Correlation Between Chartwell Small and The Hartford
Can any of the company-specific risk be diversified away by investing in both Chartwell Small 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 Chartwell Small and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chartwell Small Cap and The Hartford International, you can compare the effects of market volatilities on Chartwell Small 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 Chartwell Small with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Small and The Hartford.
Diversification Opportunities for Chartwell Small and The Hartford
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chartwell and The is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Small Cap and The Hartford International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Interna and Chartwell Small 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 Chartwell Small 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 Interna has no effect on the direction of Chartwell Small i.e., Chartwell Small and The Hartford go up and down completely randomly.
Pair Corralation between Chartwell Small and The Hartford
Assuming the 90 days horizon Chartwell Small Cap is expected to generate 2.14 times more return on investment than The Hartford. However, Chartwell Small is 2.14 times more volatile than The Hartford International. It trades about 0.3 of its potential returns per unit of risk. The Hartford International is currently generating about -0.09 per unit of risk. If you would invest 2,071 in Chartwell Small Cap on September 1, 2024 and sell it today you would earn a total of 230.00 from holding Chartwell Small Cap or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Chartwell Small Cap vs. The Hartford International
Performance |
| Timeline |
| Chartwell Small Cap |
| Hartford Interna |
Chartwell Small and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chartwell Small and The Hartford
The main advantage of trading using opposite Chartwell Small and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Small 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.| Chartwell Small vs. Chartwell Short Duration | Chartwell Small vs. Carillon Chartwell Short | Chartwell Small vs. Chartwell Short Duration | Chartwell Small vs. Carillon Chartwell Short |
| The Hartford vs. Chartwell Small Cap | The Hartford vs. Jpmorgan Small Cap | The Hartford vs. Victory Rs Small | The Hartford vs. Artisan Small Cap |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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