Correlation Between Ab Global and The Hartford
Can any of the company-specific risk be diversified away by investing in both Ab Global 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 Ab Global and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Real and The Hartford Small, you can compare the effects of market volatilities on Ab Global 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 Ab Global with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and The Hartford.
Diversification Opportunities for Ab Global and The Hartford
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AEEIX and The is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Real and The Hartford Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small and Ab Global 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 Ab Global Real 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 Ab Global i.e., Ab Global and The Hartford go up and down completely randomly.
Pair Corralation between Ab Global and The Hartford
Assuming the 90 days horizon Ab Global is expected to generate 2.41 times less return on investment than The Hartford. But when comparing it to its historical volatility, Ab Global Real is 1.56 times less risky than The Hartford. It trades about 0.11 of its potential returns per unit of risk. The Hartford Small is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,691 in The Hartford Small on September 5, 2024 and sell it today you would earn a total of 455.00 from holding The Hartford Small or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Real vs. The Hartford Small
Performance |
| Timeline |
| Ab Global Real |
| Hartford Small |
Ab Global and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and The Hartford
The main advantage of trading using opposite Ab Global and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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.| Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab Minnesota Portfolio |
| The Hartford vs. Dreyfusstandish Global Fixed | The Hartford vs. Alliancebernstein Global High | The Hartford vs. Morningstar Global Income | The Hartford vs. Ab Global Real |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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