Correlation Between Fisher Small and The Hartford
Can any of the company-specific risk be diversified away by investing in both Fisher Small and The Hartford 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 Fisher Small and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fisher Small Cap and The Hartford Midcap, you can compare the effects of market volatilities on Fisher Small and The Hartford 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 Fisher Small with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Small and The Hartford.
Diversification Opportunities for Fisher Small and The Hartford
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fisher and The is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Small Cap and The Hartford Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Midcap and Fisher 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 Fisher Small Cap are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Midcap has no effect on the direction of Fisher Small i.e., Fisher Small and The Hartford go up and down completely randomly.
Pair Corralation between Fisher Small and The Hartford
Assuming the 90 days horizon Fisher Small Cap is expected to generate 1.29 times more return on investment than The Hartford. However, Fisher Small is 1.29 times more volatile than The Hartford Midcap. It trades about 0.05 of its potential returns per unit of risk. The Hartford Midcap is currently generating about 0.05 per unit of risk. If you would invest 1,085 in Fisher Small Cap on August 31, 2024 and sell it today you would earn a total of 264.00 from holding Fisher Small Cap or generate 24.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Fisher Small Cap vs. The Hartford Midcap
Performance |
| Timeline |
| Fisher Small Cap |
| Hartford Midcap |
Fisher Small and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Small and The Hartford
The main advantage of trading using opposite Fisher Small and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Small position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Fisher Small vs. The Hartford Midcap | Fisher Small vs. Mfs Emerging Markets | Fisher Small vs. Wells Fargo Special | Fisher Small vs. Baron Emerging Markets |
| The Hartford vs. T Rowe Price | The Hartford vs. T Rowe Price | The Hartford vs. T Rowe Price | The Hartford vs. T Rowe Price |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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