Correlation Between American Funds and The Hartford
Can any of the company-specific risk be diversified away by investing in both American Funds 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 American Funds and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds American and The Hartford Checks, you can compare the effects of market volatilities on American Funds 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 American Funds with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and The Hartford.
Diversification Opportunities for American Funds and The Hartford
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between American and The is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding American Funds American and The Hartford Checks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Checks and American Funds 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 American Funds American 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 Checks has no effect on the direction of American Funds i.e., American Funds and The Hartford go up and down completely randomly.
Pair Corralation between American Funds and The Hartford
Assuming the 90 days horizon American Funds American is expected to generate 0.84 times more return on investment than The Hartford. However, American Funds American is 1.19 times less risky than The Hartford. It trades about 0.1 of its potential returns per unit of risk. The Hartford Checks is currently generating about 0.05 per unit of risk. If you would invest 2,838 in American Funds American on September 4, 2024 and sell it today you would earn a total of 857.00 from holding American Funds American or generate 30.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
American Funds American vs. The Hartford Checks
Performance |
| Timeline |
| American Funds American |
| Hartford Checks |
American Funds and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and The Hartford
The main advantage of trading using opposite American Funds and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds 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.| American Funds vs. Income Fund Of | American Funds vs. New World Fund | American Funds vs. American Mutual Fund | American Funds vs. American Mutual Fund |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges |