Correlation Between Hartford Capital and General Money
Can any of the company-specific risk be diversified away by investing in both Hartford Capital and General Money 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 Capital and General Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Capital and General Money Market, you can compare the effects of market volatilities on Hartford Capital and General Money 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 Capital with a short position of General Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Capital and General Money.
Diversification Opportunities for Hartford Capital and General Money
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and General is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Capital and General Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Money Market and Hartford Capital 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 Capital are associated (or correlated) with General Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Money Market has no effect on the direction of Hartford Capital i.e., Hartford Capital and General Money go up and down completely randomly.
Pair Corralation between Hartford Capital and General Money
Assuming the 90 days horizon The Hartford Capital is expected to generate 3.53 times more return on investment than General Money. However, Hartford Capital is 3.53 times more volatile than General Money Market. It trades about 0.02 of its potential returns per unit of risk. General Money Market is currently generating about 0.05 per unit of risk. If you would invest 4,397 in The Hartford Capital on September 13, 2024 and sell it today you would earn a total of 91.00 from holding The Hartford Capital or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.88% |
| Values | Daily Returns |
The Hartford Capital vs. General Money Market
Performance |
| Timeline |
| Hartford Capital |
| General Money Market |
Hartford Capital and General Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Capital and General Money
The main advantage of trading using opposite Hartford Capital and General Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Capital position performs unexpectedly, General Money 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 General Money will offset losses from the drop in General Money's long position.| Hartford Capital vs. The Hartford Growth | Hartford Capital vs. The Hartford Growth | Hartford Capital vs. The Hartford Growth | Hartford Capital vs. The Hartford Growth |
| General Money vs. Putnam Money Market | General Money vs. Cref Money Market | General Money vs. Ab Government Exchange | General Money vs. Money Market Obligations |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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