Correlation Between Aquagold International and The Hartford
Can any of the company-specific risk be diversified away by investing in both Aquagold International 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 Aquagold International and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and The Hartford Balanced, you can compare the effects of market volatilities on Aquagold International 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 Aquagold International with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and The Hartford.
Diversification Opportunities for Aquagold International and The Hartford
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aquagold and The is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and The Hartford Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Balanced and Aquagold International 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 Aquagold International 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 Balanced has no effect on the direction of Aquagold International i.e., Aquagold International and The Hartford go up and down completely randomly.
Pair Corralation between Aquagold International and The Hartford
Given the investment horizon of 90 days Aquagold International is expected to under-perform the The Hartford. In addition to that, Aquagold International is 19.84 times more volatile than The Hartford Balanced. It trades about -0.12 of its total potential returns per unit of risk. The Hartford Balanced is currently generating about -0.02 per unit of volatility. If you would invest 1,484 in The Hartford Balanced on November 28, 2024 and sell it today you would lose (18.00) from holding The Hartford Balanced or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.58% |
| Values | Daily Returns |
Aquagold International vs. The Hartford Balanced
Performance |
| Timeline |
| Aquagold International |
| Hartford Balanced |
Aquagold International and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and The Hartford
The main advantage of trading using opposite Aquagold International and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International 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.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| The Hartford vs. Crossmark Steward Equity | The Hartford vs. Tax Managed International Equity | The Hartford vs. Doubleline Emerging Markets | The Hartford vs. Ms Global Fixed |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |