Correlation Between Gamco International and Hartford Growth
Can any of the company-specific risk be diversified away by investing in both Gamco International 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 Gamco International and Hartford Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco International Growth and The Hartford Growth, you can compare the effects of market volatilities on Gamco International 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 Gamco International with a short position of Hartford Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco International and Hartford Growth.
Diversification Opportunities for Gamco International and Hartford Growth
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gamco and Hartford is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gamco International Growth and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth and Gamco International 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 Gamco International Growth 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 Gamco International i.e., Gamco International and Hartford Growth go up and down completely randomly.
Pair Corralation between Gamco International and Hartford Growth
Assuming the 90 days horizon Gamco International Growth is expected to under-perform the Hartford Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Gamco International Growth is 1.28 times less risky than Hartford Growth. The mutual fund trades about -0.01 of its potential returns per unit of risk. The The Hartford Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. 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 |
Gamco International Growth vs. The Hartford Growth
Performance |
| Timeline |
| Gamco International |
| Hartford Growth |
Gamco International and Hartford Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco International and Hartford Growth
The main advantage of trading using opposite Gamco International and Hartford Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco International 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.| Gamco International vs. Shelton E Value | Gamco International vs. Growth Fund Of | Gamco International vs. Tfa Quantitative | Gamco International vs. Qs Growth Fund |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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