Correlation Between Hartford Growth and Templeton Growth
Can any of the company-specific risk be diversified away by investing in both Hartford Growth and Templeton 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 Hartford Growth and Templeton 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 Templeton Growth Fund, you can compare the effects of market volatilities on Hartford Growth and Templeton 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 Hartford Growth with a short position of Templeton Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Templeton Growth.
Diversification Opportunities for Hartford Growth and Templeton Growth
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hartford and Templeton is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Templeton Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Growth 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 Templeton Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Growth has no effect on the direction of Hartford Growth i.e., Hartford Growth and Templeton Growth go up and down completely randomly.
Pair Corralation between Hartford Growth and Templeton Growth
Assuming the 90 days horizon The Hartford Growth is expected to generate 1.6 times more return on investment than Templeton Growth. However, Hartford Growth is 1.6 times more volatile than Templeton Growth Fund. It trades about 0.11 of its potential returns per unit of risk. Templeton Growth Fund is currently generating about 0.05 per unit of risk. If you would invest 3,737 in The Hartford Growth on October 27, 2024 and sell it today you would earn a total of 3,288 from holding The Hartford Growth or generate 87.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Growth vs. Templeton Growth Fund
Performance |
| Timeline |
| Hartford Growth |
| Templeton Growth |
Hartford Growth and Templeton Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Growth and Templeton Growth
The main advantage of trading using opposite Hartford Growth and Templeton Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Growth position performs unexpectedly, Templeton 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 Templeton Growth will offset losses from the drop in Templeton Growth's long position.| Hartford Growth vs. Investec Emerging Markets | Hartford Growth vs. Balanced Strategy Fund | Hartford Growth vs. Western Assets Emerging | Hartford Growth vs. Siit Emerging Markets |
| Templeton Growth vs. T Rowe Price | Templeton Growth vs. Guidemark Large Cap | Templeton Growth vs. Rational Strategic Allocation | Templeton Growth vs. Oppenheimer Global Allocation |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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