Correlation Between The Hartford and Highland Small-cap
Can any of the company-specific risk be diversified away by investing in both The Hartford and Highland Small-cap 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 Highland Small-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Inflation and Highland Small Cap Equity, you can compare the effects of market volatilities on The Hartford and Highland Small-cap 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 Highland Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Highland Small-cap.
Diversification Opportunities for The Hartford and Highland Small-cap
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between The and Highland is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Inflation and Highland Small Cap Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Small Cap 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 Inflation are associated (or correlated) with Highland Small-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Small Cap has no effect on the direction of The Hartford i.e., The Hartford and Highland Small-cap go up and down completely randomly.
Pair Corralation between The Hartford and Highland Small-cap
Assuming the 90 days horizon The Hartford is expected to generate 2378.0 times less return on investment than Highland Small-cap. But when comparing it to its historical volatility, The Hartford Inflation is 4.05 times less risky than Highland Small-cap. It trades about 0.0 of its potential returns per unit of risk. Highland Small Cap Equity is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 573.00 in Highland Small Cap Equity on September 1, 2024 and sell it today you would earn a total of 29.00 from holding Highland Small Cap Equity or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Inflation vs. Highland Small Cap Equity
Performance |
| Timeline |
| The Hartford Inflation |
| Highland Small Cap |
The Hartford and Highland Small-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Highland Small-cap
The main advantage of trading using opposite The Hartford and Highland Small-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Highland Small-cap 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 Highland Small-cap will offset losses from the drop in Highland Small-cap's long position.| The Hartford vs. Hartford Growth Opportunities | The Hartford vs. The Hartford Growth | The Hartford vs. Hartford Global Impact | The Hartford vs. Hartford Global Impact |
| Highland Small-cap vs. The Hartford Inflation | Highland Small-cap vs. Aqr Managed Futures | Highland Small-cap vs. Fidelity Advisor 529 | Highland Small-cap vs. Ab Bond Inflation |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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