Correlation Between Allianzgi Emerging and The Hartford
Can any of the company-specific risk be diversified away by investing in both Allianzgi Emerging 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 Allianzgi Emerging and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Emerging Markets and The Hartford Small, you can compare the effects of market volatilities on Allianzgi Emerging 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 Allianzgi Emerging with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Emerging and The Hartford.
Diversification Opportunities for Allianzgi Emerging and The Hartford
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Allianzgi and THE is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Emerging Markets and The Hartford Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small and Allianzgi Emerging 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 Allianzgi Emerging Markets 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 Allianzgi Emerging i.e., Allianzgi Emerging and The Hartford go up and down completely randomly.
Pair Corralation between Allianzgi Emerging and The Hartford
Assuming the 90 days horizon Allianzgi Emerging Markets is expected to under-perform the The Hartford. But the mutual fund apears to be less risky and, when comparing its historical volatility, Allianzgi Emerging Markets is 1.94 times less risky than The Hartford. The mutual fund trades about -0.18 of its potential returns per unit of risk. The The Hartford Small is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,889 in The Hartford Small on August 26, 2024 and sell it today you would earn a total of 219.00 from holding The Hartford Small or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Emerging Markets vs. The Hartford Small
Performance |
| Timeline |
| Allianzgi Emerging |
| Hartford Small |
Allianzgi Emerging and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Emerging and The Hartford
The main advantage of trading using opposite Allianzgi Emerging and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Emerging 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.| Allianzgi Emerging vs. The Hartford Small | Allianzgi Emerging vs. Ab Small Cap | Allianzgi Emerging vs. Vanguard Small Cap Index | Allianzgi Emerging vs. Artisan Small Cap |
| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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