Correlation Between Federated Kaufmann and The Hartford
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann 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 Federated Kaufmann and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Kaufmann Small and The Hartford Midcap, you can compare the effects of market volatilities on Federated Kaufmann 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 Federated Kaufmann with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and The Hartford.
Diversification Opportunities for Federated Kaufmann and The Hartford
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and The is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Small and The Hartford Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Midcap and Federated Kaufmann 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 Federated Kaufmann Small 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 Midcap has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and The Hartford go up and down completely randomly.
Pair Corralation between Federated Kaufmann and The Hartford
Assuming the 90 days horizon Federated Kaufmann is expected to generate 1.23 times less return on investment than The Hartford. In addition to that, Federated Kaufmann is 1.21 times more volatile than The Hartford Midcap. It trades about 0.3 of its total potential returns per unit of risk. The Hartford Midcap is currently generating about 0.45 per unit of volatility. If you would invest 2,801 in The Hartford Midcap on September 4, 2024 and sell it today you would earn a total of 271.00 from holding The Hartford Midcap or generate 9.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Kaufmann Small vs. The Hartford Midcap
Performance |
| Timeline |
| Federated Kaufmann Small |
| Hartford Midcap |
Federated Kaufmann and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and The Hartford
The main advantage of trading using opposite Federated Kaufmann and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann 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.| Federated Kaufmann vs. Balanced Fund Retail | Federated Kaufmann vs. Gmo Global Equity | Federated Kaufmann vs. The Fixed Income | Federated Kaufmann vs. Artisan Select Equity |
| The Hartford vs. Europacific Growth Fund | The Hartford vs. Washington Mutual Investors | The Hartford vs. Wells Fargo Special | The Hartford vs. Mfs Emerging Markets |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |