Correlation Between The Hartford and Madison Aggressive
Can any of the company-specific risk be diversified away by investing in both The Hartford and Madison Aggressive 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 Madison Aggressive 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 Madison Aggressive Allocation, you can compare the effects of market volatilities on The Hartford and Madison Aggressive 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 Madison Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Madison Aggressive.
Diversification Opportunities for The Hartford and Madison Aggressive
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between The and Madison is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Equity and Madison Aggressive Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Madison Aggressive 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 Equity are associated (or correlated) with Madison Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Madison Aggressive has no effect on the direction of The Hartford i.e., The Hartford and Madison Aggressive go up and down completely randomly.
Pair Corralation between The Hartford and Madison Aggressive
Assuming the 90 days horizon The Hartford Equity is expected to generate 1.2 times more return on investment than Madison Aggressive. However, The Hartford is 1.2 times more volatile than Madison Aggressive Allocation. It trades about 0.15 of its potential returns per unit of risk. Madison Aggressive Allocation is currently generating about 0.12 per unit of risk. If you would invest 2,175 in The Hartford Equity on September 3, 2024 and sell it today you would earn a total of 122.00 from holding The Hartford Equity or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Equity vs. Madison Aggressive Allocation
Performance |
| Timeline |
| Hartford Equity |
| Madison Aggressive |
The Hartford and Madison Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Madison Aggressive
The main advantage of trading using opposite The Hartford and Madison Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Madison Aggressive 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 Madison Aggressive will offset losses from the drop in Madison Aggressive's long position.| The Hartford vs. The Hartford Dividend | The Hartford vs. The Hartford Total | The Hartford vs. The Hartford International | The Hartford vs. The Hartford Midcap |
| Madison Aggressive vs. Locorr Dynamic Equity | Madison Aggressive vs. Calamos Global Equity | Madison Aggressive vs. The Hartford Equity | Madison Aggressive vs. Scharf Fund Retail |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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