Correlation Between NYSE Composite and Hartford Multi-asset
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Hartford Multi-asset 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 NYSE Composite and Hartford Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Hartford Multi Asset Income, you can compare the effects of market volatilities on NYSE Composite and Hartford Multi-asset 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 NYSE Composite with a short position of Hartford Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Hartford Multi-asset.
Diversification Opportunities for NYSE Composite and Hartford Multi-asset
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Hartford is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Hartford Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Multi Asset and NYSE Composite 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 NYSE Composite are associated (or correlated) with Hartford Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Multi Asset has no effect on the direction of NYSE Composite i.e., NYSE Composite and Hartford Multi-asset go up and down completely randomly.
Pair Corralation between NYSE Composite and Hartford Multi-asset
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.5 times more return on investment than Hartford Multi-asset. However, NYSE Composite is 2.5 times more volatile than Hartford Multi Asset Income. It trades about 0.14 of its potential returns per unit of risk. Hartford Multi Asset Income is currently generating about 0.11 per unit of risk. If you would invest 1,804,550 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 222,654 from holding NYSE Composite or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Hartford Multi Asset Income
Performance |
| Timeline |
NYSE Composite and Hartford Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Hartford Multi Asset Income
Pair trading matchups for Hartford Multi-asset
Pair Trading with NYSE Composite and Hartford Multi-asset
The main advantage of trading using opposite NYSE Composite and Hartford Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Hartford Multi-asset 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 Multi-asset will offset losses from the drop in Hartford Multi-asset's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |