Correlation Between Falcon Focus and Hartford Growth
Can any of the company-specific risk be diversified away by investing in both Falcon Focus and Hartford Growth 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 Falcon Focus and Hartford Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Focus Scv and The Hartford Growth, you can compare the effects of market volatilities on Falcon Focus and Hartford Growth 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 Falcon Focus with a short position of Hartford Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and Hartford Growth.
Diversification Opportunities for Falcon Focus and Hartford Growth
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Falcon and Hartford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Focus Scv and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth and Falcon Focus 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 Falcon Focus Scv are associated (or correlated) with Hartford Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Falcon Focus i.e., Falcon Focus and Hartford Growth go up and down completely randomly.
Pair Corralation between Falcon Focus and Hartford Growth
Assuming the 90 days horizon Falcon Focus is expected to generate 2.07 times less return on investment than Hartford Growth. But when comparing it to its historical volatility, Falcon Focus Scv is 1.79 times less risky than Hartford Growth. It trades about 0.12 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 4,474 in The Hartford Growth on September 15, 2024 and sell it today you would earn a total of 2,376 from holding The Hartford Growth or generate 53.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falcon Focus Scv vs. The Hartford Growth
Performance |
| Timeline |
| Falcon Focus Scv |
| Hartford Growth |
Falcon Focus and Hartford Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Focus and Hartford Growth
The main advantage of trading using opposite Falcon Focus and Hartford Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Focus position performs unexpectedly, Hartford Growth 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 Growth will offset losses from the drop in Hartford Growth's long position.| Falcon Focus vs. Fidelity Freedom 2015 | Falcon Focus vs. Fidelity Puritan Fund | Falcon Focus vs. Fidelity Puritan Fund | Falcon Focus vs. Fidelity Pennsylvania Municipal |
| Hartford Growth vs. Western Asset Municipal | Hartford Growth vs. Falcon Focus Scv | Hartford Growth vs. Fa 529 Aggressive | Hartford Growth vs. Arrow Managed Futures |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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