Correlation Between Quantitative Longshort and Hartford Growth
Can any of the company-specific risk be diversified away by investing in both Quantitative Longshort 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 Quantitative Longshort and Hartford Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantitative Longshort Equity and The Hartford Growth, you can compare the effects of market volatilities on Quantitative Longshort 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 Quantitative Longshort with a short position of Hartford Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantitative Longshort and Hartford Growth.
Diversification Opportunities for Quantitative Longshort and Hartford Growth
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Quantitative and Hartford is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Quantitative Longshort Equity and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth and Quantitative Longshort 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 Quantitative Longshort Equity 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 Quantitative Longshort i.e., Quantitative Longshort and Hartford Growth go up and down completely randomly.
Pair Corralation between Quantitative Longshort and Hartford Growth
Assuming the 90 days horizon Quantitative Longshort Equity is expected to under-perform the Hartford Growth. In addition to that, Quantitative Longshort is 1.03 times more volatile than The Hartford Growth. It trades about -0.07 of its total potential returns per unit of risk. The Hartford Growth is currently generating about 0.16 per unit of volatility. If you would invest 6,030 in The Hartford Growth on September 30, 2024 and sell it today you would earn a total of 706.00 from holding The Hartford Growth or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quantitative Longshort Equity vs. The Hartford Growth
Performance |
| Timeline |
| Quantitative Longshort |
| Hartford Growth |
Quantitative Longshort and Hartford Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantitative Longshort and Hartford Growth
The main advantage of trading using opposite Quantitative Longshort and Hartford Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantitative Longshort 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.The idea behind Quantitative Longshort Equity and The Hartford Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Hartford Growth vs. The Hartford Dividend | Hartford Growth vs. The Hartford Capital | Hartford Growth vs. The Hartford Equity | Hartford Growth 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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