Correlation Between Hartford Midcap and Nationwide Highmark
Can any of the company-specific risk be diversified away by investing in both Hartford Midcap and Nationwide Highmark 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 Midcap and Nationwide Highmark 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 Nationwide Highmark Small, you can compare the effects of market volatilities on Hartford Midcap and Nationwide Highmark 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 Midcap with a short position of Nationwide Highmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Midcap and Nationwide Highmark.
Diversification Opportunities for Hartford Midcap and Nationwide Highmark
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hartford and Nationwide is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Midcap and Nationwide Highmark Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Highmark Small and Hartford Midcap 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 Nationwide Highmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Highmark Small has no effect on the direction of Hartford Midcap i.e., Hartford Midcap and Nationwide Highmark go up and down completely randomly.
Pair Corralation between Hartford Midcap and Nationwide Highmark
Assuming the 90 days horizon The Hartford Midcap is expected to generate 0.82 times more return on investment than Nationwide Highmark. However, The Hartford Midcap is 1.22 times less risky than Nationwide Highmark. It trades about 0.45 of its potential returns per unit of risk. Nationwide Highmark Small is currently generating about 0.17 per unit of risk. If you would invest 3,307 in The Hartford Midcap on September 4, 2024 and sell it today you would earn a total of 318.00 from holding The Hartford Midcap or generate 9.62% 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. Nationwide Highmark Small
Performance |
| Timeline |
| Hartford Midcap |
| Nationwide Highmark Small |
Hartford Midcap and Nationwide Highmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Midcap and Nationwide Highmark
The main advantage of trading using opposite Hartford Midcap and Nationwide Highmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Midcap position performs unexpectedly, Nationwide Highmark 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 Nationwide Highmark will offset losses from the drop in Nationwide Highmark's long position.| Hartford Midcap vs. T Rowe Price | Hartford Midcap vs. Amcap Fund Class | Hartford Midcap vs. Ab Small Cap | Hartford Midcap vs. Wells Fargo Special |
| Nationwide Highmark vs. Nationwide Highmark Small | Nationwide Highmark vs. Janus Venture Fund | Nationwide Highmark vs. The Hartford Midcap | Nationwide Highmark vs. Aquagold International |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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