Correlation Between The Hartford and International Growth
Can any of the company-specific risk be diversified away by investing in both The Hartford and International 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 The Hartford and International Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Dividend and International Growth Fund, you can compare the effects of market volatilities on The Hartford and International 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 The Hartford with a short position of International Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and International Growth.
Diversification Opportunities for The Hartford and International Growth
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between The and International is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Dividend and International Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Growth 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 Dividend are associated (or correlated) with International Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Growth has no effect on the direction of The Hartford i.e., The Hartford and International Growth go up and down completely randomly.
Pair Corralation between The Hartford and International Growth
Assuming the 90 days horizon The Hartford is expected to generate 4.34 times less return on investment than International Growth. In addition to that, The Hartford is 1.04 times more volatile than International Growth Fund. It trades about 0.01 of its total potential returns per unit of risk. International Growth Fund is currently generating about 0.06 per unit of volatility. If you would invest 1,201 in International Growth Fund on November 3, 2024 and sell it today you would earn a total of 85.00 from holding International Growth Fund or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Dividend vs. International Growth Fund
Performance |
| Timeline |
| Hartford Dividend |
| International Growth |
The Hartford and International Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and International Growth
The main advantage of trading using opposite The Hartford and International Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, International 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 International Growth will offset losses from the drop in International Growth's long position.| The Hartford vs. Vanguard Value Index | The Hartford vs. Dodge Cox Stock | The Hartford vs. American Mutual Fund | The Hartford vs. American Funds American |
| International Growth vs. Value Fund Investor | International Growth vs. Ultra Fund Investor | International Growth vs. Growth Fund Investor | International Growth vs. Income Growth Fund |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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