Correlation Between Golden Metal and Hartford Financial
Can any of the company-specific risk be diversified away by investing in both Golden Metal and Hartford Financial 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 Golden Metal and Hartford Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Metal Resources and Hartford Financial Services, you can compare the effects of market volatilities on Golden Metal and Hartford Financial 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 Golden Metal with a short position of Hartford Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Metal and Hartford Financial.
Diversification Opportunities for Golden Metal and Hartford Financial
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Golden and Hartford is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Golden Metal Resources and Hartford Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Financial and Golden Metal 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 Golden Metal Resources are associated (or correlated) with Hartford Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Financial has no effect on the direction of Golden Metal i.e., Golden Metal and Hartford Financial go up and down completely randomly.
Pair Corralation between Golden Metal and Hartford Financial
Assuming the 90 days trading horizon Golden Metal Resources is expected to generate 1.76 times more return on investment than Hartford Financial. However, Golden Metal is 1.76 times more volatile than Hartford Financial Services. It trades about 0.36 of its potential returns per unit of risk. Hartford Financial Services is currently generating about 0.07 per unit of risk. If you would invest 2,800 in Golden Metal Resources on October 25, 2024 and sell it today you would earn a total of 450.00 from holding Golden Metal Resources or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Golden Metal Resources vs. Hartford Financial Services
Performance |
| Timeline |
| Golden Metal Resources |
| Hartford Financial |
Golden Metal and Hartford Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Metal and Hartford Financial
The main advantage of trading using opposite Golden Metal and Hartford Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Metal position performs unexpectedly, Hartford Financial 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 Financial will offset losses from the drop in Hartford Financial's long position.| Golden Metal vs. Young Cos Brewery | Golden Metal vs. Sydbank | Golden Metal vs. Nordic Semiconductor ASA | Golden Metal vs. St Galler Kantonalbank |
| Hartford Financial vs. HCA Healthcare | Hartford Financial vs. MyHealthChecked Plc | Hartford Financial vs. Primary Health Properties | Hartford Financial vs. Golden Metal Resources |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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