Correlation Between Eagle Growth and The Hartford
Can any of the company-specific risk be diversified away by investing in both Eagle 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 Eagle 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 Eagle Growth Income and The Hartford Equity, you can compare the effects of market volatilities on Eagle 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 Eagle Growth with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Growth and The Hartford.
Diversification Opportunities for Eagle Growth and The Hartford
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagle and THE is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Growth Income and The Hartford Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Equity and Eagle 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 Eagle Growth Income 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 Equity has no effect on the direction of Eagle Growth i.e., Eagle Growth and The Hartford go up and down completely randomly.
Pair Corralation between Eagle Growth and The Hartford
If you would invest 2,253 in The Hartford Equity on August 28, 2024 and sell it today you would earn a total of 62.00 from holding The Hartford Equity or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
Eagle Growth Income vs. The Hartford Equity
Performance |
| Timeline |
| Eagle Growth Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hartford Equity |
Eagle Growth and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Growth and The Hartford
The main advantage of trading using opposite Eagle Growth and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle 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.| Eagle Growth vs. Rbb Fund Trust | Eagle Growth vs. Nuveen Global Real | Eagle Growth vs. Dreyfusstandish Global Fixed | Eagle Growth vs. Scharf Global Opportunity |
| The Hartford vs. Firsthand Alternative Energy | The Hartford vs. Short Oil Gas | The Hartford vs. Goehring Rozencwajg Resources | The Hartford vs. Icon Natural Resources |
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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