Correlation Between The Hartford and Catalyst/map Global
Can any of the company-specific risk be diversified away by investing in both The Hartford and Catalyst/map Global 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 Catalyst/map Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Emerging and Catalystmap Global Equity, you can compare the effects of market volatilities on The Hartford and Catalyst/map Global 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 Catalyst/map Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Catalyst/map Global.
Diversification Opportunities for The Hartford and Catalyst/map Global
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between THE and Catalyst/map is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Emerging and Catalystmap Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmap Global Equity 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 Emerging are associated (or correlated) with Catalyst/map Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmap Global Equity has no effect on the direction of The Hartford i.e., The Hartford and Catalyst/map Global go up and down completely randomly.
Pair Corralation between The Hartford and Catalyst/map Global
Assuming the 90 days horizon The Hartford is expected to generate 4.75 times less return on investment than Catalyst/map Global. But when comparing it to its historical volatility, The Hartford Emerging is 1.36 times less risky than Catalyst/map Global. It trades about 0.03 of its potential returns per unit of risk. Catalystmap Global Equity is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,601 in Catalystmap Global Equity on September 4, 2024 and sell it today you would earn a total of 241.00 from holding Catalystmap Global Equity or generate 15.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Emerging vs. Catalystmap Global Equity
Performance |
| Timeline |
| Hartford Emerging |
| Catalystmap Global Equity |
The Hartford and Catalyst/map Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Catalyst/map Global
The main advantage of trading using opposite The Hartford and Catalyst/map Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Catalyst/map Global 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 Catalyst/map Global will offset losses from the drop in Catalyst/map Global's long position.| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
| Catalyst/map Global vs. The Hartford Emerging | Catalyst/map Global vs. Mondrian Emerging Markets | Catalyst/map Global vs. Massmutual Select Diversified | Catalyst/map Global vs. Barings Emerging Markets |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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