Correlation Between Hartford Municipal and China Region
Can any of the company-specific risk be diversified away by investing in both Hartford Municipal and China Region 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 Municipal and China Region 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 China Region Fund, you can compare the effects of market volatilities on Hartford Municipal and China Region 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 Municipal with a short position of China Region. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Municipal and China Region.
Diversification Opportunities for Hartford Municipal and China Region
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hartford and China is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Municipal and China Region Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Region and Hartford Municipal 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 China Region. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Region has no effect on the direction of Hartford Municipal i.e., Hartford Municipal and China Region go up and down completely randomly.
Pair Corralation between Hartford Municipal and China Region
If you would invest 834.00 in The Hartford Municipal on September 1, 2024 and sell it today you would earn a total of 8.00 from holding The Hartford Municipal or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
The Hartford Municipal vs. China Region Fund
Performance |
| Timeline |
| The Hartford Municipal |
| China Region |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hartford Municipal and China Region Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Municipal and China Region
The main advantage of trading using opposite Hartford Municipal and China Region positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Municipal position performs unexpectedly, China Region 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 China Region will offset losses from the drop in China Region's long position.| Hartford Municipal vs. Great West Real Estate | Hartford Municipal vs. Deutsche Real Estate | Hartford Municipal vs. Msif Real Estate | Hartford Municipal vs. Simt Real Estate |
| China Region vs. Mesirow Financial Small | China Region vs. Icon Financial Fund | China Region vs. Davis Financial Fund | China Region vs. Transamerica Financial Life |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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