Correlation Between Barings Us and The Hartford
Can any of the company-specific risk be diversified away by investing in both Barings Us 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 Barings Us and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings High Yield and The Hartford Inflation, you can compare the effects of market volatilities on Barings Us 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 Barings Us with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Us and The Hartford.
Diversification Opportunities for Barings Us and The Hartford
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and The is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Barings High Yield and The Hartford Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Inflation and Barings Us 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 High Yield 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 Inflation has no effect on the direction of Barings Us i.e., Barings Us and The Hartford go up and down completely randomly.
Pair Corralation between Barings Us and The Hartford
Assuming the 90 days horizon Barings High Yield is expected to generate 0.83 times more return on investment than The Hartford. However, Barings High Yield is 1.2 times less risky than The Hartford. It trades about 0.18 of its potential returns per unit of risk. The Hartford Inflation is currently generating about 0.07 per unit of risk. If you would invest 747.00 in Barings High Yield on November 3, 2024 and sell it today you would earn a total of 69.00 from holding Barings High Yield or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings High Yield vs. The Hartford Inflation
Performance |
| Timeline |
| Barings High Yield |
| The Hartford Inflation |
Barings Us and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Us and The Hartford
The main advantage of trading using opposite Barings Us and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Us 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.| Barings Us vs. Allianzgi Convertible Income | Barings Us vs. Fidelity Sai Convertible | Barings Us vs. Calamos Dynamic Convertible | Barings Us vs. Absolute Convertible Arbitrage |
| The Hartford vs. The Gabelli Equity | The Hartford vs. The Teberg Fund | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Balanced |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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