Correlation Between Hartford Small and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Hartford Small and Mainstay Map 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 Mainstay Map 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 Mainstay Map Equity, you can compare the effects of market volatilities on Hartford Small and Mainstay Map 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 Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Small and Mainstay Map.
Diversification Opportunities for Hartford Small and Mainstay Map
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and Mainstay is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Small and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity 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 Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Hartford Small i.e., Hartford Small and Mainstay Map go up and down completely randomly.
Pair Corralation between Hartford Small and Mainstay Map
Assuming the 90 days horizon The Hartford Small is expected to generate 1.41 times more return on investment than Mainstay Map. However, Hartford Small is 1.41 times more volatile than Mainstay Map Equity. It trades about 0.06 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.03 per unit of risk. If you would invest 2,231 in The Hartford Small on September 12, 2024 and sell it today you would earn a total of 862.00 from holding The Hartford Small or generate 38.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Small vs. Mainstay Map Equity
Performance |
| Timeline |
| Hartford Small |
| Mainstay Map Equity |
Hartford Small and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Small and Mainstay Map
The main advantage of trading using opposite Hartford Small and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Small position performs unexpectedly, Mainstay Map 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 Mainstay Map will offset losses from the drop in Mainstay Map'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 |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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