Correlation Between The Hartford and Calvert Emerging
Can any of the company-specific risk be diversified away by investing in both The Hartford and Calvert Emerging 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 Calvert Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Servative and Calvert Emerging Markets, you can compare the effects of market volatilities on The Hartford and Calvert Emerging 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 Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Calvert Emerging.
Diversification Opportunities for The Hartford and Calvert Emerging
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between The and Calvert is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Servative and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets 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 Servative are associated (or correlated) with Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of The Hartford i.e., The Hartford and Calvert Emerging go up and down completely randomly.
Pair Corralation between The Hartford and Calvert Emerging
Assuming the 90 days horizon The Hartford Servative is expected to generate 0.41 times more return on investment than Calvert Emerging. However, The Hartford Servative is 2.44 times less risky than Calvert Emerging. It trades about 0.4 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about -0.17 per unit of risk. If you would invest 1,134 in The Hartford Servative on September 2, 2024 and sell it today you would earn a total of 29.00 from holding The Hartford Servative or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Servative vs. Calvert Emerging Markets
Performance |
| Timeline |
| The Hartford Servative |
| Calvert Emerging Markets |
The Hartford and Calvert Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Calvert Emerging
The main advantage of trading using opposite The Hartford and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Calvert Emerging 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 Calvert Emerging will offset losses from the drop in Calvert Emerging's long position.| The Hartford vs. World Energy Fund | The Hartford vs. Firsthand Alternative Energy | The Hartford vs. Gamco Natural Resources | The Hartford vs. Energy Services Fund |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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