Correlation Between Mid-cap Growth and The Hartford
Can any of the company-specific risk be diversified away by investing in both Mid-cap Growth 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 Mid-cap Growth and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth Profund and The Hartford Emerging, you can compare the effects of market volatilities on Mid-cap Growth 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 Mid-cap Growth with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap Growth and The Hartford.
Diversification Opportunities for Mid-cap Growth and The Hartford
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mid-cap and THE is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth Profund and The Hartford Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Emerging and Mid-cap Growth 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 Mid Cap Growth Profund 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 Emerging has no effect on the direction of Mid-cap Growth i.e., Mid-cap Growth and The Hartford go up and down completely randomly.
Pair Corralation between Mid-cap Growth and The Hartford
Assuming the 90 days horizon Mid Cap Growth Profund is expected to generate 2.33 times more return on investment than The Hartford. However, Mid-cap Growth is 2.33 times more volatile than The Hartford Emerging. It trades about 0.05 of its potential returns per unit of risk. The Hartford Emerging is currently generating about 0.06 per unit of risk. If you would invest 6,526 in Mid Cap Growth Profund on September 4, 2024 and sell it today you would earn a total of 1,871 from holding Mid Cap Growth Profund or generate 28.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mid Cap Growth Profund vs. The Hartford Emerging
Performance |
| Timeline |
| Mid Cap Growth |
| Hartford Emerging |
Mid-cap Growth and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap Growth and The Hartford
The main advantage of trading using opposite Mid-cap Growth and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap Growth 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.| Mid-cap Growth vs. Ab High Income | Mid-cap Growth vs. Artisan High Income | Mid-cap Growth vs. Calvert High Yield | Mid-cap Growth vs. T Rowe Price |
| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
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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