Correlation Between The Hartford and Hartford Growth
Can any of the company-specific risk be diversified away by investing in both The Hartford and Hartford 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 Hartford 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 The Hartford Growth, you can compare the effects of market volatilities on The Hartford and Hartford 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 Hartford Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Hartford Growth.
Diversification Opportunities for The Hartford and Hartford Growth
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between The and Hartford is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of The Hartford i.e., The Hartford and Hartford Growth go up and down completely randomly.
Pair Corralation between The Hartford and Hartford Growth
Assuming the 90 days horizon The Hartford is expected to generate 1.1 times less return on investment than Hartford Growth. In addition to that, The Hartford is 1.02 times more volatile than The Hartford Growth. It trades about 0.17 of its total potential returns per unit of risk. The Hartford Growth is currently generating about 0.19 per unit of volatility. If you would invest 7,028 in The Hartford Growth on August 24, 2024 and sell it today you would earn a total of 338.00 from holding The Hartford Growth or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
The Hartford Growth vs. The Hartford Growth
Performance |
| Timeline |
| Hartford Growth |
| Hartford Growth |
The Hartford and Hartford Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Hartford Growth
The main advantage of trading using opposite The Hartford and Hartford Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Hartford 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 Hartford Growth will offset losses from the drop in Hartford Growth's long position.| The Hartford vs. HUMANA INC | The Hartford vs. Aquagold International | The Hartford vs. Barloworld Ltd ADR | The Hartford vs. Morningstar Unconstrained Allocation |
| Hartford Growth vs. The Hartford Midcap | Hartford Growth vs. Hartford Growth Opportunities | Hartford Growth vs. The Hartford Growth | Hartford Growth vs. The Hartford Capital |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |