Correlation Between Amg River and The Hartford
Can any of the company-specific risk be diversified away by investing in both Amg River 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 Amg River and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and The Hartford Midcap, you can compare the effects of market volatilities on Amg River 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 Amg River with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and The Hartford.
Diversification Opportunities for Amg River and The Hartford
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and The is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and The Hartford Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Midcap and Amg River 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 Amg River Road 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 Midcap has no effect on the direction of Amg River i.e., Amg River and The Hartford go up and down completely randomly.
Pair Corralation between Amg River and The Hartford
Assuming the 90 days horizon Amg River Road is expected to generate 1.24 times more return on investment than The Hartford. However, Amg River is 1.24 times more volatile than The Hartford Midcap. It trades about 0.42 of its potential returns per unit of risk. The Hartford Midcap is currently generating about 0.47 per unit of risk. If you would invest 1,009 in Amg River Road on September 2, 2024 and sell it today you would earn a total of 112.00 from holding Amg River Road or generate 11.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg River Road vs. The Hartford Midcap
Performance |
| Timeline |
| Amg River Road |
| Hartford Midcap |
Amg River and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and The Hartford
The main advantage of trading using opposite Amg River and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River 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.| Amg River vs. Alger Smallcap Growth | Amg River vs. Deutsche Global Real | Amg River vs. Amg River Road | Amg River vs. Delaware Value Fund |
| The Hartford vs. Hennessy Nerstone Mid | The Hartford vs. Lord Abbett Small | The Hartford vs. Royce Opportunity Fund | The Hartford vs. Amg River Road |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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