Correlation Between The Hartford and Hartford Global
Can any of the company-specific risk be diversified away by investing in both The Hartford and Hartford Global 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 Hartford Global 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 Hartford Global Impact, you can compare the effects of market volatilities on The Hartford and Hartford Global 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 Hartford Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Hartford Global.
Diversification Opportunities for The Hartford and Hartford Global
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between The and HARTFORD is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Hartford Global Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Global Impact 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 Hartford Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Global Impact has no effect on the direction of The Hartford i.e., The Hartford and Hartford Global go up and down completely randomly.
Pair Corralation between The Hartford and Hartford Global
Assuming the 90 days horizon The Hartford Growth is expected to generate 1.57 times more return on investment than Hartford Global. However, The Hartford is 1.57 times more volatile than Hartford Global Impact. It trades about 0.16 of its potential returns per unit of risk. Hartford Global Impact is currently generating about -0.02 per unit of risk. If you would invest 6,066 in The Hartford Growth on August 30, 2024 and sell it today you would earn a total of 450.00 from holding The Hartford Growth or generate 7.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Growth vs. Hartford Global Impact
Performance |
| Timeline |
| Hartford Growth |
| Hartford Global Impact |
The Hartford and Hartford Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Hartford Global
The main advantage of trading using opposite The Hartford and Hartford Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Hartford Global 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 Hartford Global will offset losses from the drop in Hartford Global's long position.| The Hartford vs. Invesco Global Health | The Hartford vs. Baron Health Care | The Hartford vs. Blackrock Health Sciences | The Hartford vs. Health Care Fund |
| Hartford Global vs. The Hartford Growth | Hartford Global vs. The Hartford Growth | Hartford Global vs. The Hartford Growth | Hartford Global vs. The Hartford Growth |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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