Correlation Between Hartford Small and Amcap Fund
Can any of the company-specific risk be diversified away by investing in both Hartford Small and Amcap Fund 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 Small and Amcap Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Small and Amcap Fund Class, you can compare the effects of market volatilities on Hartford Small and Amcap Fund 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 Small with a short position of Amcap Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Small and Amcap Fund.
Diversification Opportunities for Hartford Small and Amcap Fund
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hartford and Amcap is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Small and Amcap Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcap Fund Class and Hartford Small 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 Small are associated (or correlated) with Amcap Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcap Fund Class has no effect on the direction of Hartford Small i.e., Hartford Small and Amcap Fund go up and down completely randomly.
Pair Corralation between Hartford Small and Amcap Fund
Assuming the 90 days horizon The Hartford Small is expected to under-perform the Amcap Fund. In addition to that, Hartford Small is 1.51 times more volatile than Amcap Fund Class. It trades about -0.05 of its total potential returns per unit of risk. Amcap Fund Class is currently generating about 0.02 per unit of volatility. If you would invest 3,718 in Amcap Fund Class on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Amcap Fund Class or generate 0.32% 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 Small vs. Amcap Fund Class
Performance |
| Timeline |
| Hartford Small |
| Amcap Fund Class |
Hartford Small and Amcap Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Small and Amcap Fund
The main advantage of trading using opposite Hartford Small and Amcap Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Small position performs unexpectedly, Amcap Fund 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 Amcap Fund will offset losses from the drop in Amcap Fund's long position.| Hartford Small vs. Fidelity Small Cap | Hartford Small vs. Heartland Value Plus | Hartford Small vs. Amg River Road | Hartford Small vs. Lsv Small Cap |
| Amcap Fund vs. Acm Dynamic Opportunity | Amcap Fund vs. Falcon Focus Scv | Amcap Fund vs. Scharf Global Opportunity | Amcap Fund vs. Abr 7525 Volatility |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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