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 Asset and The Hartford Inflation, 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
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gmo and The is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Global Asset and The Hartford Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Inflation 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 Asset 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 The Hartford Inflation 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 Asset is expected to generate 2.64 times more return on investment than The Hartford. However, Gmo Global is 2.64 times more volatile than The Hartford Inflation. It trades about 0.12 of its potential returns per unit of risk. The Hartford Inflation is currently generating about 0.03 per unit of risk. If you would invest 3,367 in Gmo Global Asset on September 1, 2024 and sell it today you would earn a total of 43.00 from holding Gmo Global Asset or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Global Asset vs. The Hartford Inflation
Performance |
| Timeline |
| Gmo Global Asset |
| The Hartford Inflation |
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. Virtus High Yield | Gmo Global vs. Metropolitan West High | Gmo Global vs. Msift High Yield | Gmo Global vs. American Century High |
| The Hartford vs. Us Government Securities | The Hartford vs. Us Government Securities | The Hartford vs. Dws Government Money | The Hartford vs. Franklin Government Money |
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.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |