Correlation Between The Hartford and Wasatch Core
Can any of the company-specific risk be diversified away by investing in both The Hartford and Wasatch Core 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 Wasatch Core 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 Wasatch E Growth, you can compare the effects of market volatilities on The Hartford and Wasatch Core 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 Wasatch Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Wasatch Core.
Diversification Opportunities for The Hartford and Wasatch Core
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between The and Wasatch is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Midcap and Wasatch E Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch E 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 Midcap are associated (or correlated) with Wasatch Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch E Growth has no effect on the direction of The Hartford i.e., The Hartford and Wasatch Core go up and down completely randomly.
Pair Corralation between The Hartford and Wasatch Core
Assuming the 90 days horizon The Hartford is expected to generate 2.01 times less return on investment than Wasatch Core. But when comparing it to its historical volatility, The Hartford Midcap is 1.11 times less risky than Wasatch Core. It trades about 0.04 of its potential returns per unit of risk. Wasatch E Growth is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,011 in Wasatch E Growth on September 3, 2024 and sell it today you would earn a total of 3,900 from holding Wasatch E Growth or generate 55.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Midcap vs. Wasatch E Growth
Performance |
| Timeline |
| Hartford Midcap |
| Wasatch E Growth |
The Hartford and Wasatch Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Wasatch Core
The main advantage of trading using opposite The Hartford and Wasatch Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Wasatch Core 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 Wasatch Core will offset losses from the drop in Wasatch Core'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 |
| Wasatch Core vs. The Hartford Midcap | Wasatch Core vs. Mfs Emerging Markets | Wasatch Core vs. Wells Fargo Special | Wasatch Core vs. Washington Mutual Investors |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |