Correlation Between Gmo Global and The Hartford
Can any of the company-specific risk be diversified away by investing in both Gmo Global 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 Gmo Global and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Global Equity and The Hartford Equity, you can compare the effects of market volatilities on Gmo Global 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 Gmo Global with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Global and The Hartford.
Diversification Opportunities for Gmo Global and The Hartford
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gmo and The is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Global Equity and The Hartford Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Equity and Gmo 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 Gmo Global Equity 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 Equity has no effect on the direction of Gmo Global i.e., Gmo Global and The Hartford go up and down completely randomly.
Pair Corralation between Gmo Global and The Hartford
Assuming the 90 days horizon Gmo Global Equity is expected to under-perform the The Hartford. But the mutual fund apears to be less risky and, when comparing its historical volatility, Gmo Global Equity is 1.17 times less risky than The Hartford. The mutual fund trades about -0.04 of its potential returns per unit of risk. The The Hartford Equity is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,242 in The Hartford Equity on August 25, 2024 and sell it today you would earn a total of 24.00 from holding The Hartford Equity or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Global Equity vs. The Hartford Equity
Performance |
| Timeline |
| Gmo Global Equity |
| Hartford Equity |
Gmo Global and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Global and The Hartford
The main advantage of trading using opposite Gmo Global and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Global 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.| Gmo Global vs. Extended Market Index | Gmo Global vs. Aqr Equity Market | Gmo Global vs. Transamerica Emerging Markets | Gmo Global vs. Origin Emerging Markets |
| The Hartford vs. The Hartford Dividend | The Hartford vs. The Hartford Total | The Hartford vs. The Hartford International | The Hartford vs. The Hartford Midcap |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |