Correlation Between The Hartford and Growth Allocation
Can any of the company-specific risk be diversified away by investing in both The Hartford and Growth Allocation 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 Growth Allocation 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 Growth Allocation Fund, you can compare the effects of market volatilities on The Hartford and Growth Allocation 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 Growth Allocation. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Growth Allocation.
Diversification Opportunities for The Hartford and Growth Allocation
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between The and Growth is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Growth Allocation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Allocation 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 Growth Allocation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Allocation has no effect on the direction of The Hartford i.e., The Hartford and Growth Allocation go up and down completely randomly.
Pair Corralation between The Hartford and Growth Allocation
Assuming the 90 days horizon The Hartford is expected to generate 2.06 times less return on investment than Growth Allocation. In addition to that, The Hartford is 2.64 times more volatile than Growth Allocation Fund. It trades about 0.04 of its total potential returns per unit of risk. Growth Allocation Fund is currently generating about 0.21 per unit of volatility. If you would invest 1,273 in Growth Allocation Fund on November 4, 2024 and sell it today you would earn a total of 31.00 from holding Growth Allocation Fund or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Growth vs. Growth Allocation Fund
Performance |
| Timeline |
| Hartford Growth |
| Growth Allocation |
The Hartford and Growth Allocation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Growth Allocation
The main advantage of trading using opposite The Hartford and Growth Allocation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Growth Allocation 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 Growth Allocation will offset losses from the drop in Growth Allocation's long position.| The Hartford vs. Stone Ridge Diversified | The Hartford vs. Lord Abbett Diversified | The Hartford vs. Wealthbuilder Conservative Allocation | The Hartford vs. Allianzgi Diversified Income |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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