Correlation Between Salient Tactical and The Hartford
Can any of the company-specific risk be diversified away by investing in both Salient Tactical 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 Salient Tactical and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salient Tactical Growth and The Hartford Midcap, you can compare the effects of market volatilities on Salient Tactical 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 Salient Tactical with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salient Tactical and The Hartford.
Diversification Opportunities for Salient Tactical and The Hartford
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Salient and The is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Salient Tactical Growth and The Hartford Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Midcap and Salient Tactical 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 Salient Tactical Growth 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 Salient Tactical i.e., Salient Tactical and The Hartford go up and down completely randomly.
Pair Corralation between Salient Tactical and The Hartford
Assuming the 90 days horizon Salient Tactical is expected to generate 2.55 times less return on investment than The Hartford. But when comparing it to its historical volatility, Salient Tactical Growth is 2.26 times less risky than The Hartford. It trades about 0.27 of its potential returns per unit of risk. The Hartford Midcap is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,844 in The Hartford Midcap on August 31, 2024 and sell it today you would earn a total of 215.00 from holding The Hartford Midcap or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salient Tactical Growth vs. The Hartford Midcap
Performance |
| Timeline |
| Salient Tactical Growth |
| Hartford Midcap |
Salient Tactical and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salient Tactical and The Hartford
The main advantage of trading using opposite Salient Tactical and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient Tactical 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.| Salient Tactical vs. Ab Value Fund | Salient Tactical vs. Leggmason Partners Institutional | Salient Tactical vs. Iaadx | Salient Tactical vs. Abr 7525 Volatility |
| The Hartford vs. T Rowe Price | The Hartford vs. T Rowe Price | The Hartford vs. T Rowe Price | The Hartford vs. T Rowe Price |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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