Correlation Between Hartford Growth and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Hartford Growth and Dow Jones 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 Growth and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Growth and Dow Jones Industrial, you can compare the effects of market volatilities on Hartford Growth and Dow Jones 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 Growth with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Dow Jones.
Diversification Opportunities for Hartford Growth and Dow Jones
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hartford and Dow is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Hartford Growth 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 Growth are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Hartford Growth i.e., Hartford Growth and Dow Jones go up and down completely randomly.
Pair Corralation between Hartford Growth and Dow Jones
Assuming the 90 days horizon The Hartford Growth is expected to generate 1.71 times more return on investment than Dow Jones. However, Hartford Growth is 1.71 times more volatile than Dow Jones Industrial. It trades about 0.11 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 3,332 in The Hartford Growth on November 2, 2024 and sell it today you would earn a total of 2,777 from holding The Hartford Growth or generate 83.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
The Hartford Growth vs. Dow Jones Industrial
Performance |
| Timeline |
Hartford Growth and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
The Hartford Growth
Pair trading matchups for Hartford Growth
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Hartford Growth and Dow Jones
The main advantage of trading using opposite Hartford Growth and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Growth position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Hartford Growth vs. The Hartford Dividend | Hartford Growth vs. The Hartford Capital | Hartford Growth vs. The Hartford Equity | Hartford Growth vs. The Hartford Midcap |
| Dow Jones vs. Cincinnati Financial | Dow Jones vs. Kellanova | Dow Jones vs. Acme United | Dow Jones vs. Procter Gamble |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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