Correlation Between Boston Partners and The Hartford
Can any of the company-specific risk be diversified away by investing in both Boston Partners 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 Boston Partners and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Small and The Hartford Midcap, you can compare the effects of market volatilities on Boston Partners 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 Boston Partners with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and The Hartford.
Diversification Opportunities for Boston Partners and The Hartford
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Boston and The is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Small and The Hartford Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Midcap and Boston Partners 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 Boston Partners Small 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 Boston Partners i.e., Boston Partners and The Hartford go up and down completely randomly.
Pair Corralation between Boston Partners and The Hartford
Assuming the 90 days horizon Boston Partners Small is expected to generate 1.14 times more return on investment than The Hartford. However, Boston Partners is 1.14 times more volatile than The Hartford Midcap. It trades about 0.04 of its potential returns per unit of risk. The Hartford Midcap is currently generating about 0.04 per unit of risk. If you would invest 2,423 in Boston Partners Small on September 3, 2024 and sell it today you would earn a total of 535.00 from holding Boston Partners Small or generate 22.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Small vs. The Hartford Midcap
Performance |
| Timeline |
| Boston Partners Small |
| Hartford Midcap |
Boston Partners and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and The Hartford
The main advantage of trading using opposite Boston Partners and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners 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.| Boston Partners vs. Vanguard Small Cap Value | Boston Partners vs. Vanguard Small Cap Value | Boston Partners vs. Us Small Cap | Boston Partners vs. Us Targeted Value |
| The Hartford vs. Morgan Stanley Emerging | The Hartford vs. Ep Emerging Markets | The Hartford vs. The Hartford Emerging | The Hartford vs. Barings 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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