Correlation Between The Hartford and Baron Fintech
Can any of the company-specific risk be diversified away by investing in both The Hartford and Baron Fintech 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 Baron Fintech 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 Baron Fintech, you can compare the effects of market volatilities on The Hartford and Baron Fintech 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 Baron Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Baron Fintech.
Diversification Opportunities for The Hartford and Baron Fintech
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between The and Baron is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Small and Baron Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Fintech 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 Small are associated (or correlated) with Baron Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Fintech has no effect on the direction of The Hartford i.e., The Hartford and Baron Fintech go up and down completely randomly.
Pair Corralation between The Hartford and Baron Fintech
Assuming the 90 days horizon The Hartford Small is expected to generate 1.34 times more return on investment than Baron Fintech. However, The Hartford is 1.34 times more volatile than Baron Fintech. It trades about 0.33 of its potential returns per unit of risk. Baron Fintech is currently generating about 0.42 per unit of risk. If you would invest 2,864 in The Hartford Small on September 1, 2024 and sell it today you would earn a total of 289.00 from holding The Hartford Small or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Hartford Small vs. Baron Fintech
Performance |
| Timeline |
| Hartford Small |
| Baron Fintech |
The Hartford and Baron Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Baron Fintech
The main advantage of trading using opposite The Hartford and Baron Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Baron Fintech 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 Baron Fintech will offset losses from the drop in Baron Fintech's long position.| The Hartford vs. Ab All Market | The Hartford vs. Ep Emerging Markets | The Hartford vs. Artisan Emerging Markets | The Hartford vs. Origin Emerging Markets |
| Baron Fintech vs. Western Asset Diversified | Baron Fintech vs. Calvert Conservative Allocation | Baron Fintech vs. Fidelity Advisor Diversified | Baron Fintech vs. Huber Capital Diversified |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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