Correlation Between Hartford Growth and Aig Government
Can any of the company-specific risk be diversified away by investing in both Hartford Growth and Aig Government 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 Aig Government 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 Aig Government Money, you can compare the effects of market volatilities on Hartford Growth and Aig Government 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 Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Aig Government.
Diversification Opportunities for Hartford Growth and Aig Government
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hartford and Aig is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Growth Opportunities and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money 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 Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Hartford Growth i.e., Hartford Growth and Aig Government go up and down completely randomly.
Pair Corralation between Hartford Growth and Aig Government
Assuming the 90 days horizon Hartford Growth Opportunities is expected to generate 6.96 times more return on investment than Aig Government. However, Hartford Growth is 6.96 times more volatile than Aig Government Money. It trades about 0.13 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.04 per unit of risk. If you would invest 4,890 in Hartford Growth Opportunities on September 2, 2024 and sell it today you would earn a total of 2,333 from holding Hartford Growth Opportunities or generate 47.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Growth Opportunities vs. Aig Government Money
Performance |
| Timeline |
| Hartford Growth Oppo |
| Aig Government Money |
Hartford Growth and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Growth and Aig Government
The main advantage of trading using opposite Hartford Growth and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Growth position performs unexpectedly, Aig Government 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 Aig Government will offset losses from the drop in Aig Government's long position.| Hartford Growth vs. Allianzgi Health Sciences | Hartford Growth vs. Invesco Global Health | Hartford Growth vs. Health Biotchnology Portfolio | Hartford Growth vs. Baillie Gifford Health |
| Aig Government vs. Artisan Thematic Fund | Aig Government vs. Growth Opportunities Fund | Aig Government vs. Volumetric Fund Volumetric | Aig Government vs. Small Cap Stock |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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