Correlation Between The Hartford and Conestoga Micro
Can any of the company-specific risk be diversified away by investing in both The Hartford and Conestoga Micro 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 Conestoga Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Midcap and Conestoga Micro Cap, you can compare the effects of market volatilities on The Hartford and Conestoga Micro 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 Conestoga Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Conestoga Micro.
Diversification Opportunities for The Hartford and Conestoga Micro
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between The and Conestoga is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Midcap and Conestoga Micro Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conestoga Micro Cap 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 Midcap are associated (or correlated) with Conestoga Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conestoga Micro Cap has no effect on the direction of The Hartford i.e., The Hartford and Conestoga Micro go up and down completely randomly.
Pair Corralation between The Hartford and Conestoga Micro
Assuming the 90 days horizon The Hartford Midcap is expected to generate 0.72 times more return on investment than Conestoga Micro. However, The Hartford Midcap is 1.38 times less risky than Conestoga Micro. It trades about 0.04 of its potential returns per unit of risk. Conestoga Micro Cap is currently generating about 0.02 per unit of risk. If you would invest 2,488 in The Hartford Midcap on September 4, 2024 and sell it today you would earn a total of 584.00 from holding The Hartford Midcap or generate 23.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Midcap vs. Conestoga Micro Cap
Performance |
| Timeline |
| Hartford Midcap |
| Conestoga Micro Cap |
The Hartford and Conestoga Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Conestoga Micro
The main advantage of trading using opposite The Hartford and Conestoga Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Conestoga Micro 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 Conestoga Micro will offset losses from the drop in Conestoga Micro's long position.| The Hartford vs. Europacific Growth Fund | The Hartford vs. Washington Mutual Investors | The Hartford vs. Wells Fargo Special | The Hartford vs. Mfs Emerging Markets |
| Conestoga Micro vs. Conestoga Small Cap | Conestoga Micro vs. Conestoga Smid Cap | Conestoga Micro vs. Amg Timessquare Mid | Conestoga Micro 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |