Correlation Between Hartford Growth and Acrex
Can any of the company-specific risk be diversified away by investing in both Hartford Growth and Acrex 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 Acrex 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 Acrex, you can compare the effects of market volatilities on Hartford Growth and Acrex 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 Acrex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Acrex.
Diversification Opportunities for Hartford Growth and Acrex
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hartford and Acrex is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Acrex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acrex 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 Acrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acrex has no effect on the direction of Hartford Growth i.e., Hartford Growth and Acrex go up and down completely randomly.
Pair Corralation between Hartford Growth and Acrex
Assuming the 90 days horizon The Hartford Growth is expected to generate 1.17 times more return on investment than Acrex. However, Hartford Growth is 1.17 times more volatile than Acrex. It trades about 0.12 of its potential returns per unit of risk. Acrex is currently generating about -0.05 per unit of risk. If you would invest 3,385 in The Hartford Growth on September 28, 2024 and sell it today you would earn a total of 3,466 from holding The Hartford Growth or generate 102.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 38.31% |
| Values | Daily Returns |
The Hartford Growth vs. Acrex
Performance |
| Timeline |
| Hartford Growth |
| Acrex |
Hartford Growth and Acrex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Growth and Acrex
The main advantage of trading using opposite Hartford Growth and Acrex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Growth position performs unexpectedly, Acrex 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 Acrex will offset losses from the drop in Acrex's 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 |
| Acrex vs. Lord Abbett Small | Acrex vs. Fidelity Small Cap | Acrex vs. Applied Finance Explorer | Acrex vs. Heartland Value Plus |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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