Correlation Between The Hartford and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both The Hartford and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on The Hartford and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Strategic Asset.
Diversification Opportunities for The Hartford and Strategic Asset
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between The and STRATEGIC is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Equity and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of The Hartford i.e., The Hartford and Strategic Asset go up and down completely randomly.
Pair Corralation between The Hartford and Strategic Asset
Assuming the 90 days horizon The Hartford is expected to generate 1.05 times less return on investment than Strategic Asset. But when comparing it to its historical volatility, The Hartford Equity is 1.17 times less risky than Strategic Asset. It trades about 0.13 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,225 in Strategic Asset Management on August 29, 2024 and sell it today you would earn a total of 245.00 from holding Strategic Asset Management or generate 11.01% 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. Strategic Asset Management
Performance |
| Timeline |
| Hartford Equity |
| Strategic Asset Mana |
The Hartford and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Strategic Asset
The main advantage of trading using opposite The Hartford and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset'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 |
| Strategic Asset vs. Prudential Government Income | Strategic Asset vs. Us Government Securities | Strategic Asset vs. Fidelity Series Government | Strategic Asset vs. Virtus Seix Government |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |