Correlation Between Edgewood Growth and Hartford Schroders
Can any of the company-specific risk be diversified away by investing in both Edgewood Growth and Hartford Schroders 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 Edgewood Growth and Hartford Schroders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edgewood Growth Fund and Hartford Schroders Emerging, you can compare the effects of market volatilities on Edgewood Growth and Hartford Schroders 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 Edgewood Growth with a short position of Hartford Schroders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgewood Growth and Hartford Schroders.
Diversification Opportunities for Edgewood Growth and Hartford Schroders
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Edgewood and Hartford is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Edgewood Growth Fund and Hartford Schroders Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Schroders and Edgewood Growth 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 Edgewood Growth Fund are associated (or correlated) with Hartford Schroders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Schroders has no effect on the direction of Edgewood Growth i.e., Edgewood Growth and Hartford Schroders go up and down completely randomly.
Pair Corralation between Edgewood Growth and Hartford Schroders
Assuming the 90 days horizon Edgewood Growth Fund is expected to under-perform the Hartford Schroders. In addition to that, Edgewood Growth is 1.02 times more volatile than Hartford Schroders Emerging. It trades about -0.13 of its total potential returns per unit of risk. Hartford Schroders Emerging is currently generating about -0.1 per unit of volatility. If you would invest 1,716 in Hartford Schroders Emerging on December 1, 2024 and sell it today you would lose (34.00) from holding Hartford Schroders Emerging or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edgewood Growth Fund vs. Hartford Schroders Emerging
Performance |
| Timeline |
| Edgewood Growth |
| Hartford Schroders |
Edgewood Growth and Hartford Schroders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edgewood Growth and Hartford Schroders
The main advantage of trading using opposite Edgewood Growth and Hartford Schroders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edgewood Growth position performs unexpectedly, Hartford Schroders 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 Schroders will offset losses from the drop in Hartford Schroders' long position.| Edgewood Growth vs. John Hancock Disciplined | Edgewood Growth vs. Diamond Hill Large | Edgewood Growth vs. Hartford Schroders Emerging | Edgewood Growth vs. Oakmark International Fund |
| Hartford Schroders vs. Hartford Schroders Emerging | Hartford Schroders vs. Causeway Emerging Markets | Hartford Schroders vs. John Hancock Disciplined | Hartford Schroders vs. Edgewood Growth Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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