Correlation Between The Hartford and Ftfa Franklin
Can any of the company-specific risk be diversified away by investing in both The Hartford and Ftfa Franklin 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 Ftfa Franklin 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 Ftfa Franklin Templeton Growth, you can compare the effects of market volatilities on The Hartford and Ftfa Franklin 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 Ftfa Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Ftfa Franklin.
Diversification Opportunities for The Hartford and Ftfa Franklin
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between The and Ftfa is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Ftfa Franklin Templeton Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ftfa Franklin Templeton 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 Growth are associated (or correlated) with Ftfa Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ftfa Franklin Templeton has no effect on the direction of The Hartford i.e., The Hartford and Ftfa Franklin go up and down completely randomly.
Pair Corralation between The Hartford and Ftfa Franklin
Assuming the 90 days horizon The Hartford Growth is expected to generate 1.65 times more return on investment than Ftfa Franklin. However, The Hartford is 1.65 times more volatile than Ftfa Franklin Templeton Growth. It trades about -0.03 of its potential returns per unit of risk. Ftfa Franklin Templeton Growth is currently generating about -0.25 per unit of risk. If you would invest 6,887 in The Hartford Growth on October 12, 2024 and sell it today you would lose (64.00) from holding The Hartford Growth or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Growth vs. Ftfa Franklin Templeton Growth
Performance |
| Timeline |
| Hartford Growth |
| Ftfa Franklin Templeton |
The Hartford and Ftfa Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Ftfa Franklin
The main advantage of trading using opposite The Hartford and Ftfa Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Ftfa Franklin 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 Ftfa Franklin will offset losses from the drop in Ftfa Franklin's long position.| The Hartford vs. Alger Health Sciences | The Hartford vs. Invesco Global Health | The Hartford vs. Alphacentric Lifesci Healthcare | The Hartford vs. Delaware Healthcare Fund |
| Ftfa Franklin vs. Alpine Ultra Short | Ftfa Franklin vs. Abr Enhanced Short | Ftfa Franklin vs. Delaware Investments Ultrashort | Ftfa Franklin vs. Touchstone Ultra Short |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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