Correlation Between Needham Aggressive and Hartford Total
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Hartford Total 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 Needham Aggressive and Hartford Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and The Hartford Total, you can compare the effects of market volatilities on Needham Aggressive and Hartford Total 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 Needham Aggressive with a short position of Hartford Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Hartford Total.
Diversification Opportunities for Needham Aggressive and Hartford Total
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Needham and Hartford is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and The Hartford Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Total and Needham Aggressive 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 Needham Aggressive Growth are associated (or correlated) with Hartford Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Total has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Hartford Total go up and down completely randomly.
Pair Corralation between Needham Aggressive and Hartford Total
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 3.12 times more return on investment than Hartford Total. However, Needham Aggressive is 3.12 times more volatile than The Hartford Total. It trades about 0.08 of its potential returns per unit of risk. The Hartford Total is currently generating about 0.04 per unit of risk. If you would invest 3,190 in Needham Aggressive Growth on September 3, 2024 and sell it today you would earn a total of 1,904 from holding Needham Aggressive Growth or generate 59.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. The Hartford Total
Performance |
| Timeline |
| Needham Aggressive Growth |
| Hartford Total |
Needham Aggressive and Hartford Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Hartford Total
The main advantage of trading using opposite Needham Aggressive and Hartford Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Hartford Total 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 Hartford Total will offset losses from the drop in Hartford Total's long position.| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
| Hartford Total vs. Needham Aggressive Growth | Hartford Total vs. Artisan High Income | Hartford Total vs. Siit High Yield | Hartford Total vs. Vanguard Star Fund |
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 Stocks Directory module to find actively traded stocks across global markets.
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