Correlation Between Fisher Investments and The Hartford
Can any of the company-specific risk be diversified away by investing in both Fisher Investments 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 Investments 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 Small, you can compare the effects of market volatilities on Fisher Investments 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 Investments with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Investments and The Hartford.
Diversification Opportunities for Fisher Investments and The Hartford
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fisher and The is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Small Cap and The Hartford Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small and Fisher Investments 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 Small has no effect on the direction of Fisher Investments i.e., Fisher Investments and The Hartford go up and down completely randomly.
Pair Corralation between Fisher Investments and The Hartford
Assuming the 90 days horizon Fisher Small Cap is expected to generate 1.14 times more return on investment than The Hartford. However, Fisher Investments is 1.14 times more volatile than The Hartford Small. It trades about 0.18 of its potential returns per unit of risk. The Hartford Small is currently generating about 0.15 per unit of risk. If you would invest 1,232 in Fisher Small Cap on August 29, 2024 and sell it today you would earn a total of 129.00 from holding Fisher Small Cap or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.67% |
| Values | Daily Returns |
Fisher Small Cap vs. The Hartford Small
Performance |
| Timeline |
| Fisher Investments |
| Hartford Small |
Fisher Investments and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fisher Investments and The Hartford
The main advantage of trading using opposite Fisher Investments and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Investments 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 Investments vs. Putnam Equity Income | Fisher Investments vs. Putnam Growth Opportunities | Fisher Investments vs. HUMANA INC | Fisher Investments vs. Aquagold International |
| The Hartford vs. Putnam Equity Income | The Hartford vs. Putnam Growth Opportunities | The Hartford vs. HUMANA INC | The Hartford vs. Aquagold International |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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