Correlation Between Ab Global and The Hartford
Can any of the company-specific risk be diversified away by investing in both Ab Global 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 Ab Global and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Risk and The Hartford Emerging, you can compare the effects of market volatilities on Ab Global 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 Ab Global with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and The Hartford.
Diversification Opportunities for Ab Global and The Hartford
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CABIX and The is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and The Hartford Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Emerging and Ab 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 Ab Global Risk 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 Emerging has no effect on the direction of Ab Global i.e., Ab Global and The Hartford go up and down completely randomly.
Pair Corralation between Ab Global and The Hartford
Assuming the 90 days horizon Ab Global Risk is expected to generate 0.75 times more return on investment than The Hartford. However, Ab Global Risk is 1.34 times less risky than The Hartford. It trades about 0.35 of its potential returns per unit of risk. The Hartford Emerging is currently generating about -0.19 per unit of risk. If you would invest 1,754 in Ab Global Risk on September 4, 2024 and sell it today you would earn a total of 48.00 from holding Ab Global Risk or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Risk vs. The Hartford Emerging
Performance |
| Timeline |
| Ab Global Risk |
| Hartford Emerging |
Ab Global and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and The Hartford
The main advantage of trading using opposite Ab Global and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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.| Ab Global vs. Ab Global E | Ab Global vs. Ab Global E | Ab Global vs. Ab Minnesota Portfolio | Ab Global vs. Ab Minnesota Portfolio |
| The Hartford vs. Ab Global Risk | The Hartford vs. Morningstar Aggressive Growth | The Hartford vs. Pioneer High Yield | The Hartford vs. Needham Aggressive Growth |
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.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |