FHI vs FNGD: Correlation
Federated Hermes, Inc. (FHI) and MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) show a negative relationship: their 3-year correlation of weekly returns is -0.29.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FHI and FNGD?
Across a 3-year window, the weekly returns of FHI and FNGD correlate at -0.29, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.24 lands near the 3-year figure. Stretching to 5 years gives -0.32, with an annualized covariance of -417.6 %².
FNGD is close to the least connected end of FHI's tracked universe, ranking #9 of 11. Correlation aside, the last 12 months split them widely, with FHI ahead by 78.8 points (+23.1% versus -55.7%). Note the risk asymmetry: FNGD runs 4.0 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
FHI vs FNGD: side by side
| FHI (Federated Hermes, Inc.) | FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | |
|---|---|---|
| 1-year return | +23.1% | -55.7% |
| 5-year return | +131.6% | -99.4% |
| Volatility (ann.) | 19.0% | 75.7% |
| Beta vs S&P 500 | 0.54 | -4.54 |
| Max drawdown (3Y) | -16.6% | -97.6% |
| Market cap | $4.8B | – |
| P/E (trailing) | 12.1 | 20.6 |
| Dividend yield | 2.15% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FHI | FNGD |
|---|---|---|
| 2022 | -0.2% | +52.2% |
| 2023 | -3.8% | -90.1% |
| 2024 | +29.6% | -76.6% |
| 2025 | +30.5% | -61.4% |
| 2026 | +27.0% | -49.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FHI and FNGD good diversifiers for each other?
Yes. With a correlation of -0.29, FHI and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between FHI and FNGD?
The FHI/FNGD correlation stands at -0.29 on a 3-year window (1 year: -0.24, 5 years: -0.32), computed from weekly returns as of 2026-08-27.
Is FNGD a good diversifier for FHI?
Yes. With a correlation of -0.29, FHI and FNGD have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.29 mean?
A reading of -0.29 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fhi-vs-fngd.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: FHI correlations · FNGD correlations
