Correlation Between Hartford Equity and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Hartford Equity and Baillie Gifford 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 Hartford Equity and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Equity and Baillie Gifford Emerging, you can compare the effects of market volatilities on Hartford Equity and Baillie Gifford 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 Hartford Equity with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Equity and Baillie Gifford.
Diversification Opportunities for Hartford Equity and Baillie Gifford
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hartford and Baillie is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Equity and Baillie Gifford Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Emerging and Hartford Equity 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 Equity are associated (or correlated) with Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford Emerging has no effect on the direction of Hartford Equity i.e., Hartford Equity and Baillie Gifford go up and down completely randomly.
Pair Corralation between Hartford Equity and Baillie Gifford
Assuming the 90 days horizon The Hartford Equity is expected to generate 0.65 times more return on investment than Baillie Gifford. However, The Hartford Equity is 1.53 times less risky than Baillie Gifford. It trades about 0.09 of its potential returns per unit of risk. Baillie Gifford Emerging is currently generating about 0.06 per unit of risk. If you would invest 1,942 in The Hartford Equity on September 13, 2024 and sell it today you would earn a total of 288.00 from holding The Hartford Equity or generate 14.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Equity vs. Baillie Gifford Emerging
Performance |
| Timeline |
| Hartford Equity |
| Baillie Gifford Emerging |
Hartford Equity and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Equity and Baillie Gifford
The main advantage of trading using opposite Hartford Equity and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Equity position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.| Hartford Equity vs. The Hartford Dividend | Hartford Equity vs. The Hartford Total | Hartford Equity vs. The Hartford International | Hartford Equity vs. The Hartford Midcap |
| Baillie Gifford vs. The Eafe Pure | Baillie Gifford vs. The Long Term | Baillie Gifford vs. Baillie Gifford International | Baillie Gifford vs. Baillie Gifford International |
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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