Correlation Between Fa 529 and Hartford Multi-asset
Can any of the company-specific risk be diversified away by investing in both Fa 529 and Hartford Multi-asset 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 Fa 529 and Hartford Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fa 529 Aggressive and Hartford Multi Asset Income, you can compare the effects of market volatilities on Fa 529 and Hartford Multi-asset 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 Fa 529 with a short position of Hartford Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fa 529 and Hartford Multi-asset.
Diversification Opportunities for Fa 529 and Hartford Multi-asset
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FFCGX and Hartford is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fa 529 Aggressive and Hartford Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Multi Asset and Fa 529 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 Fa 529 Aggressive are associated (or correlated) with Hartford Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Multi Asset has no effect on the direction of Fa 529 i.e., Fa 529 and Hartford Multi-asset go up and down completely randomly.
Pair Corralation between Fa 529 and Hartford Multi-asset
Assuming the 90 days horizon Fa 529 Aggressive is expected to generate 2.1 times more return on investment than Hartford Multi-asset. However, Fa 529 is 2.1 times more volatile than Hartford Multi Asset Income. It trades about 0.09 of its potential returns per unit of risk. Hartford Multi Asset Income is currently generating about 0.04 per unit of risk. If you would invest 2,942 in Fa 529 Aggressive on September 3, 2024 and sell it today you would earn a total of 1,105 from holding Fa 529 Aggressive or generate 37.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fa 529 Aggressive vs. Hartford Multi Asset Income
Performance |
| Timeline |
| Fa 529 Aggressive |
| Hartford Multi Asset |
Fa 529 and Hartford Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fa 529 and Hartford Multi-asset
The main advantage of trading using opposite Fa 529 and Hartford Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fa 529 position performs unexpectedly, Hartford Multi-asset 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 Multi-asset will offset losses from the drop in Hartford Multi-asset's long position.| Fa 529 vs. Advent Claymore Convertible | Fa 529 vs. Lord Abbett Convertible | Fa 529 vs. Rationalpier 88 Convertible | Fa 529 vs. Absolute Convertible Arbitrage |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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