Correlation Between Bbh Intermediate and The Hartford
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate 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 Bbh Intermediate and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and The Hartford Municipal, you can compare the effects of market volatilities on Bbh Intermediate 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 Bbh Intermediate with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and The Hartford.
Diversification Opportunities for Bbh Intermediate and The Hartford
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Bbh and The is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and The Hartford Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Municipal and Bbh Intermediate 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 Bbh Intermediate Municipal 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 The Hartford Municipal has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and The Hartford go up and down completely randomly.
Pair Corralation between Bbh Intermediate and The Hartford
Assuming the 90 days horizon Bbh Intermediate Municipal is expected to generate 1.0 times more return on investment than The Hartford. However, Bbh Intermediate Municipal is 1.0 times less risky than The Hartford. It trades about 0.16 of its potential returns per unit of risk. The Hartford Municipal is currently generating about 0.14 per unit of risk. If you would invest 1,029 in Bbh Intermediate Municipal on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Bbh Intermediate Municipal or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. The Hartford Municipal
Performance |
| Timeline |
| Bbh Intermediate Mun |
| The Hartford Municipal |
Bbh Intermediate and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and The Hartford
The main advantage of trading using opposite Bbh Intermediate and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate 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.| Bbh Intermediate vs. Franklin Growth Opportunities | Bbh Intermediate vs. Pace Large Growth | Bbh Intermediate vs. Ftfa Franklin Templeton Growth | Bbh Intermediate vs. Qs Moderate Growth |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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