Correlation Between Arrow Managed and The Hartford
Can any of the company-specific risk be diversified away by investing in both Arrow Managed 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 Arrow Managed and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and The Hartford Capital, you can compare the effects of market volatilities on Arrow Managed 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 Arrow Managed with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and The Hartford.
Diversification Opportunities for Arrow Managed and The Hartford
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arrow and The is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and The Hartford Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Capital and Arrow Managed 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 Arrow Managed Futures 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 Capital has no effect on the direction of Arrow Managed i.e., Arrow Managed and The Hartford go up and down completely randomly.
Pair Corralation between Arrow Managed and The Hartford
Assuming the 90 days horizon Arrow Managed Futures is expected to under-perform the The Hartford. In addition to that, Arrow Managed is 1.73 times more volatile than The Hartford Capital. It trades about -0.05 of its total potential returns per unit of risk. The Hartford Capital is currently generating about 0.12 per unit of volatility. If you would invest 2,652 in The Hartford Capital on September 1, 2024 and sell it today you would earn a total of 337.00 from holding The Hartford Capital or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Managed Futures vs. The Hartford Capital
Performance |
| Timeline |
| Arrow Managed Futures |
| Hartford Capital |
Arrow Managed and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Managed and The Hartford
The main advantage of trading using opposite Arrow Managed and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed 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.| Arrow Managed vs. Arrow Dwa Tactical | Arrow Managed vs. Arrow Dwa Tactical | Arrow Managed vs. Vanguard 500 Index | Arrow Managed vs. Allspring Global Dividend |
| The Hartford vs. Arrow Managed Futures | The Hartford vs. Fidelity Advisor 529 | The Hartford vs. Ab Bond Inflation | The Hartford vs. Ab Bond Inflation |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |