Correlation Between Hartford Growth and Western Asset
Can any of the company-specific risk be diversified away by investing in both Hartford Growth and Western 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 Hartford Growth and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Growth and Western Asset High, you can compare the effects of market volatilities on Hartford Growth and Western 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 Hartford Growth with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Western Asset.
Diversification Opportunities for Hartford Growth and Western Asset
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hartford and Western is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High and Hartford Growth 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 Growth are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset High has no effect on the direction of Hartford Growth i.e., Hartford Growth and Western Asset go up and down completely randomly.
Pair Corralation between Hartford Growth and Western Asset
Assuming the 90 days horizon The Hartford Growth is expected to generate 2.28 times more return on investment than Western Asset. However, Hartford Growth is 2.28 times more volatile than Western Asset High. It trades about 0.12 of its potential returns per unit of risk. Western Asset High is currently generating about 0.16 per unit of risk. If you would invest 1,220 in The Hartford Growth on September 12, 2024 and sell it today you would earn a total of 328.00 from holding The Hartford Growth or generate 26.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Growth vs. Western Asset High
Performance |
| Timeline |
| Hartford Growth |
| Western Asset High |
Hartford Growth and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Growth and Western Asset
The main advantage of trading using opposite Hartford Growth and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Growth position performs unexpectedly, Western 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 Western Asset will offset losses from the drop in Western Asset's long position.| Hartford Growth vs. Ab All Market | Hartford Growth vs. Aqr Long Short Equity | Hartford Growth vs. Transamerica Emerging Markets | Hartford Growth vs. Ashmore Emerging Markets |
| Western Asset vs. SCOR PK | Western Asset vs. Morningstar Unconstrained Allocation | Western Asset vs. Via Renewables | Western Asset vs. Bondbloxx ETF Trust |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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