Correlation Between Champlain Mid and The Hartford
Can any of the company-specific risk be diversified away by investing in both Champlain Mid 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 Champlain Mid and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Mid Cap and The Hartford Dividend, you can compare the effects of market volatilities on Champlain Mid 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 Champlain Mid with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Mid and The Hartford.
Diversification Opportunities for Champlain Mid and The Hartford
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Champlain and The is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Mid Cap and The Hartford Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Dividend and Champlain Mid 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 Champlain Mid Cap 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 Dividend has no effect on the direction of Champlain Mid i.e., Champlain Mid and The Hartford go up and down completely randomly.
Pair Corralation between Champlain Mid and The Hartford
Assuming the 90 days horizon Champlain Mid is expected to generate 1.35 times less return on investment than The Hartford. In addition to that, Champlain Mid is 1.45 times more volatile than The Hartford Dividend. It trades about 0.06 of its total potential returns per unit of risk. The Hartford Dividend is currently generating about 0.12 per unit of volatility. If you would invest 3,214 in The Hartford Dividend on August 25, 2024 and sell it today you would earn a total of 542.00 from holding The Hartford Dividend or generate 16.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Mid Cap vs. The Hartford Dividend
Performance |
| Timeline |
| Champlain Mid Cap |
| Hartford Dividend |
Champlain Mid and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Mid and The Hartford
The main advantage of trading using opposite Champlain Mid and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Mid 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.| Champlain Mid vs. Blackrock Bd Fd | Champlain Mid vs. Artisan Mid Cap | Champlain Mid vs. T Rowe Price | Champlain Mid vs. Baird Short Term Bond |
| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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