Correlation Between The Hartford and International Value
Can any of the company-specific risk be diversified away by investing in both The Hartford and International Value 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 International Value 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 International Value Fund, you can compare the effects of market volatilities on The Hartford and International Value 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 International Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and International Value.
Diversification Opportunities for The Hartford and International Value
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between The and International is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Equity and International Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Value 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 International Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Value has no effect on the direction of The Hartford i.e., The Hartford and International Value go up and down completely randomly.
Pair Corralation between The Hartford and International Value
Assuming the 90 days horizon The Hartford Equity is expected to generate 0.79 times more return on investment than International Value. However, The Hartford Equity is 1.27 times less risky than International Value. It trades about 0.12 of its potential returns per unit of risk. International Value Fund is currently generating about 0.05 per unit of risk. If you would invest 1,901 in The Hartford Equity on September 4, 2024 and sell it today you would earn a total of 396.00 from holding The Hartford Equity or generate 20.83% 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 Equity vs. International Value Fund
Performance |
| Timeline |
| Hartford Equity |
| International Value |
The Hartford and International Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and International Value
The main advantage of trading using opposite The Hartford and International Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, International Value 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 International Value will offset losses from the drop in International Value'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 |
| International Value vs. Western Asset Municipal | International Value vs. Materials Portfolio Fidelity | International Value vs. Leggmason Partners Institutional | International Value vs. Falcon Focus Scv |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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