Correlation Between Franklin Growth and Hartford Growth
Can any of the company-specific risk be diversified away by investing in both Franklin Growth 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 Franklin Growth and Hartford Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Opportunities and The Hartford Growth, you can compare the effects of market volatilities on Franklin Growth 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 Franklin Growth with a short position of Hartford Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Hartford Growth.
Diversification Opportunities for Franklin Growth and Hartford Growth
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Hartford is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth and Franklin 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 Franklin Growth Opportunities 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 Franklin Growth i.e., Franklin Growth and Hartford Growth go up and down completely randomly.
Pair Corralation between Franklin Growth and Hartford Growth
Assuming the 90 days horizon Franklin Growth is expected to generate 1.82 times less return on investment than Hartford Growth. In addition to that, Franklin Growth is 1.03 times more volatile than The Hartford Growth. It trades about 0.06 of its total potential returns per unit of risk. The Hartford Growth is currently generating about 0.11 per unit of volatility. If you would invest 3,737 in The Hartford Growth on October 27, 2024 and sell it today you would earn a total of 3,288 from holding The Hartford Growth or generate 87.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. The Hartford Growth
Performance |
| Timeline |
| Franklin Growth Oppo |
| Hartford Growth |
Franklin Growth and Hartford Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Hartford Growth
The main advantage of trading using opposite Franklin Growth and Hartford Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth 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.| Franklin Growth vs. Putnman Retirement Ready | Franklin Growth vs. Sierra E Retirement | Franklin Growth vs. Jp Morgan Smartretirement | Franklin Growth vs. Wilmington Trust Retirement |
| Hartford Growth vs. Investec Emerging Markets | Hartford Growth vs. Balanced Strategy Fund | Hartford Growth vs. Western Assets Emerging | Hartford Growth vs. Siit 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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