Correlation Between Barings Global and Hartford Total
Can any of the company-specific risk be diversified away by investing in both Barings Global and Hartford Total 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 Barings Global and Hartford Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Hartford Total Return, you can compare the effects of market volatilities on Barings Global and Hartford Total 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 Barings Global with a short position of Hartford Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Hartford Total.
Diversification Opportunities for Barings Global and Hartford Total
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barings and Hartford is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Hartford Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Total Return and Barings Global 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 Barings Global Floating are associated (or correlated) with Hartford Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Total Return has no effect on the direction of Barings Global i.e., Barings Global and Hartford Total go up and down completely randomly.
Pair Corralation between Barings Global and Hartford Total
Assuming the 90 days horizon Barings Global Floating is expected to generate about the same return on investment as Hartford Total Return. But, Barings Global Floating is 2.09 times less risky than Hartford Total. It trades about 0.18 of its potential returns per unit of risk. Hartford Total Return is currently generating about 0.09 per unit of risk. If you would invest 913.00 in Hartford Total Return on August 25, 2024 and sell it today you would earn a total of 34.00 from holding Hartford Total Return or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. Hartford Total Return
Performance |
| Timeline |
| Barings Global Floating |
| Hartford Total Return |
Barings Global and Hartford Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Hartford Total
The main advantage of trading using opposite Barings Global and Hartford Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Hartford Total 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 Hartford Total will offset losses from the drop in Hartford Total's long position.| Barings Global vs. Metropolitan West High | Barings Global vs. Pace High Yield | Barings Global vs. California High Yield Municipal | Barings Global vs. Alliancebernstein Global High |
| Hartford Total vs. Barings Global Floating | Hartford Total vs. Mirova Global Green | Hartford Total vs. T Rowe Price | Hartford Total vs. Wisdomtree Siegel Global |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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