Correlation Between Hartford Global and Hartford International
Can any of the company-specific risk be diversified away by investing in both Hartford Global and Hartford International 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 Global and Hartford International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Global Impact and The Hartford International, you can compare the effects of market volatilities on Hartford Global and Hartford International 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 Global with a short position of Hartford International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Global and Hartford International.
Diversification Opportunities for Hartford Global and Hartford International
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and Hartford is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Global Impact and The Hartford International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford International and Hartford Global 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 Global Impact are associated (or correlated) with Hartford International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford International has no effect on the direction of Hartford Global i.e., Hartford Global and Hartford International go up and down completely randomly.
Pair Corralation between Hartford Global and Hartford International
Assuming the 90 days horizon Hartford Global Impact is expected to generate 0.84 times more return on investment than Hartford International. However, Hartford Global Impact is 1.19 times less risky than Hartford International. It trades about 0.05 of its potential returns per unit of risk. The Hartford International is currently generating about 0.04 per unit of risk. If you would invest 1,340 in Hartford Global Impact on November 4, 2024 and sell it today you would earn a total of 268.00 from holding Hartford Global Impact or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Global Impact vs. The Hartford International
Performance |
| Timeline |
| Hartford Global Impact |
| Hartford International |
Hartford Global and Hartford International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Global and Hartford International
The main advantage of trading using opposite Hartford Global and Hartford International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Global position performs unexpectedly, Hartford International 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 International will offset losses from the drop in Hartford International's long position.| Hartford Global vs. Prudential Government Money | Hartford Global vs. Inverse Government Long | Hartford Global vs. Hsbc Government Money | Hartford Global vs. Elfun Government Money |
| Hartford International vs. The Hartford Small | Hartford International vs. Emerging Markets Portfolio | Hartford International vs. Loomis Sayles Growth | Hartford International vs. Deutsche Global Small |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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