Correlation Between The Hartford and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both The Hartford and Franklin Growth 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 Franklin Growth 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 Franklin Growth Opportunities, you can compare the effects of market volatilities on The Hartford and Franklin Growth 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 Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Franklin Growth.
Diversification Opportunities for The Hartford and Franklin Growth
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between The and Franklin is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Franklin Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth Oppo 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 Franklin Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Growth Oppo has no effect on the direction of The Hartford i.e., The Hartford and Franklin Growth go up and down completely randomly.
Pair Corralation between The Hartford and Franklin Growth
Assuming the 90 days horizon The Hartford Growth is expected to generate 0.69 times more return on investment than Franklin Growth. However, The Hartford Growth is 1.44 times less risky than Franklin Growth. It trades about -0.03 of its potential returns per unit of risk. Franklin Growth Opportunities is currently generating about -0.31 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Growth vs. Franklin Growth Opportunities
Performance |
| Timeline |
| Hartford Growth |
| Franklin Growth Oppo |
The Hartford and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Franklin Growth
The main advantage of trading using opposite The Hartford and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Franklin Growth 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 Franklin Growth will offset losses from the drop in Franklin Growth'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 |
| Franklin Growth vs. Goldman Sachs Real | Franklin Growth vs. Dunham Real Estate | Franklin Growth vs. Deutsche Real Estate | Franklin Growth vs. Tiaa Cref Real Estate |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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