Correlation Between Growth Fund and The Hartford
Can any of the company-specific risk be diversified away by investing in both Growth Fund 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 Growth Fund and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and The Hartford Growth, you can compare the effects of market volatilities on Growth Fund 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 Growth Fund with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and The Hartford.
Diversification Opportunities for Growth Fund and The Hartford
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and The is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth and Growth Fund 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 Growth Fund Of 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 Growth has no effect on the direction of Growth Fund i.e., Growth Fund and The Hartford go up and down completely randomly.
Pair Corralation between Growth Fund and The Hartford
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.83 times more return on investment than The Hartford. However, Growth Fund Of is 1.2 times less risky than The Hartford. It trades about 0.2 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.15 per unit of risk. If you would invest 7,807 in Growth Fund Of on August 29, 2024 and sell it today you would earn a total of 345.00 from holding Growth Fund Of or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Growth Fund Of vs. The Hartford Growth
Performance |
| Timeline |
| Growth Fund |
| Hartford Growth |
Growth Fund and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and The Hartford
The main advantage of trading using opposite Growth Fund and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund 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.| Growth Fund vs. Europacific Growth Fund | Growth Fund vs. Capital World Growth | Growth Fund vs. American Funds Fundamental | Growth Fund vs. Washington Mutual Investors |
| The Hartford vs. Growth Fund Of | The Hartford vs. HUMANA INC | The Hartford vs. Aquagold International | The Hartford vs. Barloworld Ltd ADR |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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