Correlation Between Catalyst/smh High and The Hartford
Can any of the company-specific risk be diversified away by investing in both Catalyst/smh High 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 Catalyst/smh High and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystsmh High Income and The Hartford Capital, you can compare the effects of market volatilities on Catalyst/smh High 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 Catalyst/smh High with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/smh High and The Hartford.
Diversification Opportunities for Catalyst/smh High and The Hartford
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Catalyst/smh and The is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Catalystsmh High Income and The Hartford Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Capital and Catalyst/smh High 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 Catalystsmh High 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 Capital has no effect on the direction of Catalyst/smh High i.e., Catalyst/smh High and The Hartford go up and down completely randomly.
Pair Corralation between Catalyst/smh High and The Hartford
Assuming the 90 days horizon Catalyst/smh High is expected to generate 1.95 times less return on investment than The Hartford. But when comparing it to its historical volatility, Catalystsmh High Income is 3.05 times less risky than The Hartford. It trades about 0.21 of its potential returns per unit of risk. The Hartford Capital is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,299 in The Hartford Capital on September 1, 2024 and sell it today you would earn a total of 601.00 from holding The Hartford Capital or generate 13.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalystsmh High Income vs. The Hartford Capital
Performance |
| Timeline |
| Catalystsmh High Income |
| Hartford Capital |
Catalyst/smh High and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst/smh High and The Hartford
The main advantage of trading using opposite Catalyst/smh High and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst/smh High 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.| Catalyst/smh High vs. High Yield Bond | Catalyst/smh High vs. Artisan High Income | Catalyst/smh High vs. Pacific Funds High | Catalyst/smh High vs. Victory High Yield |
| The Hartford vs. Nationwide Inflation Protected Securities | The Hartford vs. Arrow Managed Futures | The Hartford vs. Ab Bond Inflation | The Hartford vs. Blackrock Inflation Protected |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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