Correlation Between The Hartford and Smallcap Growth
Can any of the company-specific risk be diversified away by investing in both The Hartford and Smallcap Growth 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 Smallcap Growth 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 Smallcap Growth Fund, you can compare the effects of market volatilities on The Hartford and Smallcap Growth 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 Smallcap Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Smallcap Growth.
Diversification Opportunities for The Hartford and Smallcap Growth
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between The and Smallcap is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Equity and Smallcap Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smallcap Growth 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 Smallcap Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smallcap Growth has no effect on the direction of The Hartford i.e., The Hartford and Smallcap Growth go up and down completely randomly.
Pair Corralation between The Hartford and Smallcap Growth
Assuming the 90 days horizon The Hartford is expected to generate 3.13 times less return on investment than Smallcap Growth. But when comparing it to its historical volatility, The Hartford Equity is 2.03 times less risky than Smallcap Growth. It trades about 0.1 of its potential returns per unit of risk. Smallcap Growth Fund is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,597 in Smallcap Growth Fund on August 30, 2024 and sell it today you would earn a total of 130.00 from holding Smallcap Growth Fund or generate 8.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Equity vs. Smallcap Growth Fund
Performance |
| Timeline |
| Hartford Equity |
| Smallcap Growth |
The Hartford and Smallcap Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Smallcap Growth
The main advantage of trading using opposite The Hartford and Smallcap Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Smallcap Growth 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 Smallcap Growth will offset losses from the drop in Smallcap Growth'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 |
| Smallcap Growth vs. Dreyfusstandish Global Fixed | Smallcap Growth vs. The Hartford Equity | Smallcap Growth vs. Rbc Ultra Short Fixed | Smallcap Growth vs. Small Cap Equity |
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.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |