Correlation Between Asg Global and Hartford Small
Can any of the company-specific risk be diversified away by investing in both Asg Global and Hartford Small 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 Asg Global and Hartford Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asg Global Alternatives and The Hartford Small, you can compare the effects of market volatilities on Asg Global and Hartford Small 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 Asg Global with a short position of Hartford Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Global and Hartford Small.
Diversification Opportunities for Asg Global and Hartford Small
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asg and Hartford is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Asg Global Alternatives and The Hartford Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small and Asg Global 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 Asg Global Alternatives are associated (or correlated) with Hartford Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Small has no effect on the direction of Asg Global i.e., Asg Global and Hartford Small go up and down completely randomly.
Pair Corralation between Asg Global and Hartford Small
Assuming the 90 days horizon Asg Global Alternatives is expected to generate 0.28 times more return on investment than Hartford Small. However, Asg Global Alternatives is 3.6 times less risky than Hartford Small. It trades about -0.19 of its potential returns per unit of risk. The Hartford Small is currently generating about -0.17 per unit of risk. If you would invest 1,068 in Asg Global Alternatives on October 9, 2024 and sell it today you would lose (14.00) from holding Asg Global Alternatives or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asg Global Alternatives vs. The Hartford Small
Performance |
| Timeline |
| Asg Global Alternatives |
| Hartford Small |
Asg Global and Hartford Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asg Global and Hartford Small
The main advantage of trading using opposite Asg Global and Hartford Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Global position performs unexpectedly, Hartford Small 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 Small will offset losses from the drop in Hartford Small's long position.| Asg Global vs. Allianzgi Convertible Income | Asg Global vs. Absolute Convertible Arbitrage | Asg Global vs. Putnam Vertible Securities | Asg Global vs. Victory Incore Investment |
| Hartford Small vs. Ft 9331 Corporate | Hartford Small vs. Georgia Tax Free Bond | Hartford Small vs. Metropolitan West Porate | Hartford Small vs. Siit High Yield |
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
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| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |