Correlation Between The Hartford and Westwood Income
Can any of the company-specific risk be diversified away by investing in both The Hartford and Westwood Income 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 The Hartford and Westwood Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Balanced and Westwood Income Opportunity, you can compare the effects of market volatilities on The Hartford and Westwood Income 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 The Hartford with a short position of Westwood Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Westwood Income.
Diversification Opportunities for The Hartford and Westwood Income
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between The and Westwood is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Balanced and Westwood Income Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westwood Income Oppo and The Hartford 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 The Hartford Balanced are associated (or correlated) with Westwood Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westwood Income Oppo has no effect on the direction of The Hartford i.e., The Hartford and Westwood Income go up and down completely randomly.
Pair Corralation between The Hartford and Westwood Income
Assuming the 90 days horizon The Hartford Balanced is expected to under-perform the Westwood Income. In addition to that, The Hartford is 1.22 times more volatile than Westwood Income Opportunity. It trades about -0.03 of its total potential returns per unit of risk. Westwood Income Opportunity is currently generating about 0.1 per unit of volatility. If you would invest 1,180 in Westwood Income Opportunity on November 2, 2024 and sell it today you would earn a total of 53.00 from holding Westwood Income Opportunity or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
The Hartford Balanced vs. Westwood Income Opportunity
Performance |
| Timeline |
| Hartford Balanced |
| Westwood Income Oppo |
The Hartford and Westwood Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Westwood Income
The main advantage of trading using opposite The Hartford and Westwood Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Westwood Income 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 Westwood Income will offset losses from the drop in Westwood Income's long position.| The Hartford vs. Voya High Yield | The Hartford vs. Calvert High Yield | The Hartford vs. Janus High Yield Fund | The Hartford vs. Lord Abbett Short |
| Westwood Income vs. Berwyn Income Fund | Westwood Income vs. Fpa Crescent Fund | Westwood Income vs. James Balanced Golden | Westwood Income vs. Westwood Largecap Value |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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