Correlation Between Hartford Small and Chase Growth
Can any of the company-specific risk be diversified away by investing in both Hartford Small and Chase Growth 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 Chase Growth 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 Chase Growth Fund, you can compare the effects of market volatilities on Hartford Small and Chase Growth 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 Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Small and Chase Growth.
Diversification Opportunities for Hartford Small and Chase Growth
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hartford and Chase is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Small and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth 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 Chase Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase Growth has no effect on the direction of Hartford Small i.e., Hartford Small and Chase Growth go up and down completely randomly.
Pair Corralation between Hartford Small and Chase Growth
Assuming the 90 days horizon The Hartford Small is expected to generate 0.44 times more return on investment than Chase Growth. However, The Hartford Small is 2.3 times less risky than Chase Growth. It trades about 0.09 of its potential returns per unit of risk. Chase Growth Fund is currently generating about -0.1 per unit of risk. If you would invest 2,055 in The Hartford Small on September 13, 2024 and sell it today you would earn a total of 91.00 from holding The Hartford Small or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Small vs. Chase Growth Fund
Performance |
| Timeline |
| Hartford Small |
| Chase Growth |
Hartford Small and Chase Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Small and Chase Growth
The main advantage of trading using opposite Hartford Small and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Small position performs unexpectedly, Chase Growth 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 Chase Growth will offset losses from the drop in Chase Growth's long position.| Hartford Small vs. Transamerica Intermediate Muni | Hartford Small vs. T Rowe Price | Hartford Small vs. Nuveen Minnesota Municipal | Hartford Small vs. Blrc Sgy Mnp |
| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity Fund |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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