Correlation Between The Hartford and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both The Hartford and Amg Gwk 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 Amg Gwk 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 Amg Gwk Smallmid, you can compare the effects of market volatilities on The Hartford and Amg Gwk 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 Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Amg Gwk.
Diversification Opportunities for The Hartford and Amg Gwk
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between THE and Amg is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Small and Amg Gwk Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Smallmid 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 Amg Gwk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Gwk Smallmid has no effect on the direction of The Hartford i.e., The Hartford and Amg Gwk go up and down completely randomly.
Pair Corralation between The Hartford and Amg Gwk
Assuming the 90 days horizon The Hartford is expected to generate 1.14 times less return on investment than Amg Gwk. In addition to that, The Hartford is 1.06 times more volatile than Amg Gwk Smallmid. It trades about 0.24 of its total potential returns per unit of risk. Amg Gwk Smallmid is currently generating about 0.29 per unit of volatility. If you would invest 1,889 in Amg Gwk Smallmid on August 27, 2024 and sell it today you would earn a total of 165.00 from holding Amg Gwk Smallmid or generate 8.73% 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. Amg Gwk Smallmid
Performance |
| Timeline |
| Hartford Small |
| Amg Gwk Smallmid |
The Hartford and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Amg Gwk
The main advantage of trading using opposite The Hartford and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Amg Gwk 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 Amg Gwk will offset losses from the drop in Amg Gwk's long position.| The Hartford vs. Mesirow Financial Small | The Hartford vs. Fidelity Advisor Financial | The Hartford vs. Gabelli Global Financial | The Hartford vs. Prudential Jennison Financial |
| Amg Gwk vs. The Hartford Small | Amg Gwk vs. Qs Small Capitalization | Amg Gwk vs. M3sixty Capital Small | Amg Gwk vs. Victory Integrity Small Cap |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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