Correlation Between The Hartford and Sit Esg
Can any of the company-specific risk be diversified away by investing in both The Hartford and Sit Esg 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 Sit Esg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Municipal and Sit Esg Growth, you can compare the effects of market volatilities on The Hartford and Sit Esg 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 Sit Esg. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Sit Esg.
Diversification Opportunities for The Hartford and Sit Esg
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between The and Sit is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Municipal and Sit Esg Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Esg 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 Municipal are associated (or correlated) with Sit Esg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Esg Growth has no effect on the direction of The Hartford i.e., The Hartford and Sit Esg go up and down completely randomly.
Pair Corralation between The Hartford and Sit Esg
Assuming the 90 days horizon The Hartford is expected to generate 5.3 times less return on investment than Sit Esg. But when comparing it to its historical volatility, The Hartford Municipal is 2.44 times less risky than Sit Esg. It trades about 0.14 of its potential returns per unit of risk. Sit Esg Growth is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,174 in Sit Esg Growth on September 3, 2024 and sell it today you would earn a total of 84.00 from holding Sit Esg Growth or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Municipal vs. Sit Esg Growth
Performance |
| Timeline |
| The Hartford Municipal |
| Sit Esg Growth |
The Hartford and Sit Esg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Sit Esg
The main advantage of trading using opposite The Hartford and Sit Esg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Sit Esg 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 Sit Esg will offset losses from the drop in Sit Esg's long position.| The Hartford vs. Ambrus Core Bond | The Hartford vs. Dreyfusstandish Global Fixed | The Hartford vs. Maryland Tax Free Bond | The Hartford vs. Blrc Sgy Mnp |
| Sit Esg vs. Growth Strategy Fund | Sit Esg vs. Balanced Fund Investor | Sit Esg vs. Ab Small Cap | Sit Esg vs. T Rowe Price |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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