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 Small, 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
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fisher and The is 0.86. 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 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 Small 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 under-perform the The Hartford. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fisher Small Cap is 1.21 times less risky than The Hartford. The mutual fund trades about -0.42 of its potential returns per unit of risk. The The Hartford Small is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 2,314 in The Hartford Small on November 28, 2024 and sell it today you would lose (103.00) from holding The Hartford Small or give up 4.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fisher Small Cap vs. The Hartford Small
Performance |
| Timeline |
| Fisher Small Cap |
| Hartford Small |
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. Rbc Impact Bond | Fisher Small vs. Nuveen Strategic Municipal | Fisher Small vs. Artisan High Income | Fisher Small vs. Calvert Bond Portfolio |
| The Hartford vs. Transam Short Term Bond | The Hartford vs. Fidelity Flex Servative | The Hartford vs. T Rowe Price | The Hartford vs. Seix Govt Sec |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |