Correlation Between The Hartford and Siit Equity
Can any of the company-specific risk be diversified away by investing in both The Hartford and Siit Equity 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 Siit Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford International and Siit Equity Factor, you can compare the effects of market volatilities on The Hartford and Siit Equity 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 Siit Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Siit Equity.
Diversification Opportunities for The Hartford and Siit Equity
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between The and Siit is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford International and Siit Equity Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Equity Factor 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 International are associated (or correlated) with Siit Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Equity Factor has no effect on the direction of The Hartford i.e., The Hartford and Siit Equity go up and down completely randomly.
Pair Corralation between The Hartford and Siit Equity
Assuming the 90 days horizon The Hartford International is expected to generate 1.1 times more return on investment than Siit Equity. However, The Hartford is 1.1 times more volatile than Siit Equity Factor. It trades about 0.29 of its potential returns per unit of risk. Siit Equity Factor is currently generating about 0.25 per unit of risk. If you would invest 1,544 in The Hartford International on November 3, 2024 and sell it today you would earn a total of 71.00 from holding The Hartford International or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford International vs. Siit Equity Factor
Performance |
| Timeline |
| Hartford Interna |
| Siit Equity Factor |
The Hartford and Siit Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Siit Equity
The main advantage of trading using opposite The Hartford and Siit Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Siit Equity 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 Siit Equity will offset losses from the drop in Siit Equity's long position.| The Hartford vs. Ab Bond Inflation | The Hartford vs. Lord Abbett Inflation | The Hartford vs. Arrow Managed Futures | The Hartford vs. Short Duration Inflation |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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