Correlation Between The Hartford and Dodge International
Can any of the company-specific risk be diversified away by investing in both The Hartford and Dodge International 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 Dodge International 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 Dodge International Stock, you can compare the effects of market volatilities on The Hartford and Dodge International 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 Dodge International. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Dodge International.
Diversification Opportunities for The Hartford and Dodge International
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between The and Dodge is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Equity and Dodge International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge International Stock 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 Dodge International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dodge International Stock has no effect on the direction of The Hartford i.e., The Hartford and Dodge International go up and down completely randomly.
Pair Corralation between The Hartford and Dodge International
Assuming the 90 days horizon The Hartford is expected to generate 1.42 times less return on investment than Dodge International. But when comparing it to its historical volatility, The Hartford Equity is 1.13 times less risky than Dodge International. It trades about 0.04 of its potential returns per unit of risk. Dodge International Stock is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,287 in Dodge International Stock on September 3, 2024 and sell it today you would earn a total of 996.00 from holding Dodge International Stock or generate 23.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Equity vs. Dodge International Stock
Performance |
| Timeline |
| Hartford Equity |
| Dodge International Stock |
The Hartford and Dodge International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Dodge International
The main advantage of trading using opposite The Hartford and Dodge International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Dodge International 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 Dodge International will offset losses from the drop in Dodge International's long position.| The Hartford vs. Calvert Global Energy | The Hartford vs. Salient Mlp Energy | The Hartford vs. Tortoise Energy Independence | The Hartford vs. Oil Gas Ultrasector |
| Dodge International vs. Dodge Stock Fund | Dodge International vs. Dodge Income Fund | Dodge International vs. Dodge Balanced Fund | Dodge International vs. The Fairholme Fund |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |