Correlation Between The Hartford and Champlain Small
Can any of the company-specific risk be diversified away by investing in both The Hartford and Champlain Small 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 Champlain Small 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 Champlain Small, you can compare the effects of market volatilities on The Hartford and Champlain Small 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 Champlain Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Champlain Small.
Diversification Opportunities for The Hartford and Champlain Small
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between The and Champlain is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Small and Champlain Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Small 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 Champlain Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Small has no effect on the direction of The Hartford i.e., The Hartford and Champlain Small go up and down completely randomly.
Pair Corralation between The Hartford and Champlain Small
Assuming the 90 days horizon The Hartford Small is expected to under-perform the Champlain Small. In addition to that, The Hartford is 1.08 times more volatile than Champlain Small. It trades about -0.01 of its total potential returns per unit of risk. Champlain Small is currently generating about 0.0 per unit of volatility. If you would invest 2,024 in Champlain Small on January 16, 2025 and sell it today you would lose (23.00) from holding Champlain Small or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
The Hartford Small vs. Champlain Small
Performance |
| Timeline |
| Hartford Small |
| Champlain Small |
The Hartford and Champlain Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Champlain Small
The main advantage of trading using opposite The Hartford and Champlain Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Champlain Small 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 Champlain Small will offset losses from the drop in Champlain Small's long position.| The Hartford vs. Delaware Emerging Markets | The Hartford vs. Ep Emerging Markets | The Hartford vs. Mondrian Emerging Markets | The Hartford vs. Siit Emerging Markets |
| Champlain Small vs. The Hartford Midcap | Champlain Small vs. Mfs Emerging Markets | Champlain Small vs. Wells Fargo Special | Champlain Small vs. Washington Mutual Investors |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |