Correlation Between Angel Oak and Hartford Growth
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Hartford Growth 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 Angel Oak and Hartford Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Ultrashort and The Hartford Growth, you can compare the effects of market volatilities on Angel Oak and Hartford Growth 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 Angel Oak with a short position of Hartford Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Hartford Growth.
Diversification Opportunities for Angel Oak and Hartford Growth
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Hartford is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth and Angel Oak 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 Angel Oak Ultrashort are associated (or correlated) with Hartford Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Angel Oak i.e., Angel Oak and Hartford Growth go up and down completely randomly.
Pair Corralation between Angel Oak and Hartford Growth
Assuming the 90 days horizon Angel Oak is expected to generate 12.6 times less return on investment than Hartford Growth. But when comparing it to its historical volatility, Angel Oak Ultrashort is 12.73 times less risky than Hartford Growth. It trades about 0.15 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,515 in The Hartford Growth on August 29, 2024 and sell it today you would earn a total of 210.00 from holding The Hartford Growth or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. The Hartford Growth
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Hartford Growth |
Angel Oak and Hartford Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Hartford Growth
The main advantage of trading using opposite Angel Oak and Hartford Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Hartford Growth 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 Hartford Growth will offset losses from the drop in Hartford Growth's long position.| Angel Oak vs. Pimco Short Term Fund | Angel Oak vs. Short Term Fund Institutional | Angel Oak vs. Short Term Fund Administrative | Angel Oak vs. Short Term Fund R |
| Hartford Growth vs. Multisector Bond Sma | Hartford Growth vs. Mirova Global Green | Hartford Growth vs. Angel Oak Ultrashort | Hartford Growth vs. Transamerica Emerging Markets |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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