Correlation Between The Hartford and Clearbridge Small
Can any of the company-specific risk be diversified away by investing in both The Hartford and Clearbridge Small 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 Clearbridge Small 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 Clearbridge Small Cap, you can compare the effects of market volatilities on The Hartford and Clearbridge Small 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 Clearbridge Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Clearbridge Small.
Diversification Opportunities for The Hartford and Clearbridge Small
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between The and Clearbridge is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Equity and Clearbridge Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Small Cap 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 Clearbridge Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Small Cap has no effect on the direction of The Hartford i.e., The Hartford and Clearbridge Small go up and down completely randomly.
Pair Corralation between The Hartford and Clearbridge Small
Assuming the 90 days horizon The Hartford is expected to generate 5.22 times less return on investment than Clearbridge Small. But when comparing it to its historical volatility, The Hartford Equity is 2.29 times less risky than Clearbridge Small. It trades about 0.11 of its potential returns per unit of risk. Clearbridge Small Cap is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 3,675 in Clearbridge Small Cap on August 28, 2024 and sell it today you would earn a total of 328.00 from holding Clearbridge Small Cap or generate 8.93% 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. Clearbridge Small Cap
Performance |
| Timeline |
| Hartford Equity |
| Clearbridge Small Cap |
The Hartford and Clearbridge Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Clearbridge Small
The main advantage of trading using opposite The Hartford and Clearbridge Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Clearbridge Small 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 Clearbridge Small will offset losses from the drop in Clearbridge Small'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 |
| Clearbridge Small vs. Franklin Mutual Beacon | Clearbridge Small vs. Templeton Developing Markets | Clearbridge Small vs. Franklin Mutual Global | Clearbridge Small vs. Franklin Mutual Global |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |