Correlation Between Ancora/thelen Small-mid and The Hartford
Can any of the company-specific risk be diversified away by investing in both Ancora/thelen Small-mid and The Hartford at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ancora/thelen Small-mid and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ancorathelen Small Mid Cap and The Hartford Small, you can compare the effects of market volatilities on Ancora/thelen Small-mid and The Hartford and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ancora/thelen Small-mid with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ancora/thelen Small-mid and The Hartford.
Diversification Opportunities for Ancora/thelen Small-mid and The Hartford
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ancora/thelen and THE is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Ancorathelen Small Mid Cap and The Hartford Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small and Ancora/thelen Small-mid is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ancorathelen Small Mid Cap are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Small has no effect on the direction of Ancora/thelen Small-mid i.e., Ancora/thelen Small-mid and The Hartford go up and down completely randomly.
Pair Corralation between Ancora/thelen Small-mid and The Hartford
Assuming the 90 days horizon Ancorathelen Small Mid Cap is expected to generate 0.82 times more return on investment than The Hartford. However, Ancorathelen Small Mid Cap is 1.22 times less risky than The Hartford. It trades about 0.38 of its potential returns per unit of risk. The Hartford Small is currently generating about 0.24 per unit of risk. If you would invest 2,060 in Ancorathelen Small Mid Cap on August 28, 2024 and sell it today you would earn a total of 212.00 from holding Ancorathelen Small Mid Cap or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ancorathelen Small Mid Cap vs. The Hartford Small
Performance |
| Timeline |
| Ancora/thelen Small-mid |
| Hartford Small |
Ancora/thelen Small-mid and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ancora/thelen Small-mid and The Hartford
The main advantage of trading using opposite Ancora/thelen Small-mid and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ancora/thelen Small-mid position performs unexpectedly, The Hartford can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in The Hartford will offset losses from the drop in The Hartford's long position.| Ancora/thelen Small-mid vs. Ancora Microcap Fund | Ancora/thelen Small-mid vs. Ancora Income Fund | Ancora/thelen Small-mid vs. Proxy Voting Where Does Your Fund Manager Stand On Esg Issuesaspx |
| The Hartford vs. Mesirow Financial Small | The Hartford vs. Fidelity Advisor Financial | The Hartford vs. Gabelli Global Financial | The Hartford vs. Prudential Jennison Financial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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