Correlation Between Barloworld and The Hartford
Can any of the company-specific risk be diversified away by investing in both Barloworld 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 Barloworld and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barloworld Ltd ADR and The Hartford Balanced, you can compare the effects of market volatilities on Barloworld 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 Barloworld with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barloworld and The Hartford.
Diversification Opportunities for Barloworld and The Hartford
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barloworld and The is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Barloworld Ltd ADR and The Hartford Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Balanced and Barloworld 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 Barloworld Ltd ADR 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 Barloworld i.e., Barloworld and The Hartford go up and down completely randomly.
Pair Corralation between Barloworld and The Hartford
Assuming the 90 days horizon Barloworld is expected to generate 1.46 times less return on investment than The Hartford. In addition to that, Barloworld is 10.94 times more volatile than The Hartford Balanced. It trades about 0.01 of its total potential returns per unit of risk. The Hartford Balanced is currently generating about 0.09 per unit of volatility. If you would invest 1,310 in The Hartford Balanced on August 28, 2024 and sell it today you would earn a total of 179.00 from holding The Hartford Balanced or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 60.06% |
| Values | Daily Returns |
Barloworld Ltd ADR vs. The Hartford Balanced
Performance |
| Timeline |
| Barloworld ADR |
| Hartford Balanced |
Barloworld and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barloworld and The Hartford
The main advantage of trading using opposite Barloworld and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barloworld 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.| Barloworld vs. United Rentals | Barloworld vs. AerCap Holdings NV | Barloworld vs. Fortress Transp Infra | Barloworld vs. U Haul Holding |
| The Hartford vs. Artisan High Income | The Hartford vs. Morningstar Defensive Bond | The Hartford vs. Alliancebernstein National Municipal | The Hartford vs. Dws Government Money |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |