Correlation Between Hartford Growth and Muhlenkamp Fund
Can any of the company-specific risk be diversified away by investing in both Hartford Growth and Muhlenkamp Fund 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 Muhlenkamp Fund 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 Muhlenkamp Fund Institutional, you can compare the effects of market volatilities on Hartford Growth and Muhlenkamp Fund 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 Muhlenkamp Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Muhlenkamp Fund.
Diversification Opportunities for Hartford Growth and Muhlenkamp Fund
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hartford and Muhlenkamp is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Muhlenkamp Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muhlenkamp Fund Inst 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 Muhlenkamp Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muhlenkamp Fund Inst has no effect on the direction of Hartford Growth i.e., Hartford Growth and Muhlenkamp Fund go up and down completely randomly.
Pair Corralation between Hartford Growth and Muhlenkamp Fund
Assuming the 90 days horizon The Hartford Growth is expected to generate 0.59 times more return on investment than Muhlenkamp Fund. However, The Hartford Growth is 1.68 times less risky than Muhlenkamp Fund. It trades about -0.03 of its potential returns per unit of risk. Muhlenkamp Fund Institutional is currently generating about -0.04 per unit of risk. If you would invest 6,757 in The Hartford Growth on October 23, 2024 and sell it today you would lose (55.00) from holding The Hartford Growth or give up 0.81% 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. Muhlenkamp Fund Institutional
Performance |
| Timeline |
| Hartford Growth |
| Muhlenkamp Fund Inst |
Hartford Growth and Muhlenkamp Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Growth and Muhlenkamp Fund
The main advantage of trading using opposite Hartford Growth and Muhlenkamp Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Growth position performs unexpectedly, Muhlenkamp Fund 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 Muhlenkamp Fund will offset losses from the drop in Muhlenkamp Fund's long position.| Hartford Growth vs. Columbia Convertible Securities | Hartford Growth vs. Rationalpier 88 Convertible | Hartford Growth vs. Absolute Convertible Arbitrage | Hartford Growth vs. Virtus Convertible |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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