Correlation Between Hartford Moderate and American Funds
Can any of the company-specific risk be diversified away by investing in both Hartford Moderate and American Funds 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 Hartford Moderate and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Moderate Allocation and American Funds American, you can compare the effects of market volatilities on Hartford Moderate and American Funds 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 Hartford Moderate with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Moderate and American Funds.
Diversification Opportunities for Hartford Moderate and American Funds
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hartford and American is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Moderate Allocation and American Funds American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds American and Hartford Moderate 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 Hartford Moderate Allocation are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds American has no effect on the direction of Hartford Moderate i.e., Hartford Moderate and American Funds go up and down completely randomly.
Pair Corralation between Hartford Moderate and American Funds
Assuming the 90 days horizon Hartford Moderate Allocation is expected to generate 0.85 times more return on investment than American Funds. However, Hartford Moderate Allocation is 1.18 times less risky than American Funds. It trades about 0.36 of its potential returns per unit of risk. American Funds American is currently generating about 0.3 per unit of risk. If you would invest 1,300 in Hartford Moderate Allocation on September 3, 2024 and sell it today you would earn a total of 40.00 from holding Hartford Moderate Allocation or generate 3.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hartford Moderate Allocation vs. American Funds American
Performance |
Timeline |
Hartford Moderate |
American Funds American |
Hartford Moderate and American Funds Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hartford Moderate and American Funds
The main advantage of trading using opposite Hartford Moderate and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Moderate position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.Hartford Moderate vs. American Funds American | Hartford Moderate vs. American Funds American | Hartford Moderate vs. American Balanced | Hartford Moderate vs. American Balanced Fund |
American Funds vs. Qs Large Cap | American Funds vs. Scharf Global Opportunity | American Funds vs. Rbb Fund | American Funds vs. T Rowe Price |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |