Correlation Between NYSE Composite and Hartford Global
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Hartford Global 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 Global 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 Global Impact, you can compare the effects of market volatilities on NYSE Composite and Hartford Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Hartford Global.
Diversification Opportunities for NYSE Composite and Hartford Global
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Hartford is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Hartford Global Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Global Impact 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Global Impact has no effect on the direction of NYSE Composite i.e., NYSE Composite and Hartford Global go up and down completely randomly.
Pair Corralation between NYSE Composite and Hartford Global
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.99 times more return on investment than Hartford Global. However, NYSE Composite is 1.01 times less risky than Hartford Global. It trades about 0.19 of its potential returns per unit of risk. Hartford Global Impact is currently generating about 0.07 per unit of risk. If you would invest 1,956,073 in NYSE Composite on August 25, 2024 and sell it today you would earn a total of 56,272 from holding NYSE Composite or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Hartford Global Impact
Performance |
| Timeline |
NYSE Composite and Hartford Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Hartford Global Impact
Pair trading matchups for Hartford Global
Pair Trading with NYSE Composite and Hartford Global
The main advantage of trading using opposite NYSE Composite and Hartford Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Hartford Global 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 Global will offset losses from the drop in Hartford Global's long position.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| Hartford Global vs. American Fds Smallcap | Hartford Global vs. Smallcap World Fund | Hartford Global vs. Smallcap World Fund | Hartford Global vs. Smallcap World 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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