Correlation Between Hartford Growth and The Hartford
Can any of the company-specific risk be diversified away by investing in both Hartford Growth and The Hartford 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 The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Growth Opportunities and The Hartford Checks, you can compare the effects of market volatilities on Hartford Growth and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and The Hartford.
Diversification Opportunities for Hartford Growth and The Hartford
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hartford and The is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Growth Opportunities and The Hartford Checks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Checks 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 Hartford Growth Opportunities are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Checks has no effect on the direction of Hartford Growth i.e., Hartford Growth and The Hartford go up and down completely randomly.
Pair Corralation between Hartford Growth and The Hartford
Assuming the 90 days horizon Hartford Growth Opportunities is expected to generate 2.76 times more return on investment than The Hartford. However, Hartford Growth is 2.76 times more volatile than The Hartford Checks. It trades about 0.1 of its potential returns per unit of risk. The Hartford Checks is currently generating about 0.14 per unit of risk. If you would invest 6,088 in Hartford Growth Opportunities on August 29, 2024 and sell it today you would earn a total of 1,075 from holding Hartford Growth Opportunities or generate 17.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Growth Opportunities vs. The Hartford Checks
Performance |
| Timeline |
| Hartford Growth Oppo |
| Hartford Checks |
Hartford Growth and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Growth and The Hartford
The main advantage of trading using opposite Hartford Growth and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Growth position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Hartford Growth vs. John Hancock Government | Hartford Growth vs. Dreyfus Government Cash | Hartford Growth vs. Lord Abbett Government | Hartford Growth vs. Prudential Government Income |
| The Hartford vs. Jhancock Short Duration | The Hartford vs. Maryland Short Term Tax Free | The Hartford vs. Aqr Long Short Equity | The Hartford vs. Federated Short Intermediate Duration |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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