Correlation Between Origin Emerging and The Hartford
Can any of the company-specific risk be diversified away by investing in both Origin Emerging 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 Origin Emerging and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Emerging Markets and The Hartford Inflation, you can compare the effects of market volatilities on Origin Emerging 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 Origin Emerging with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Emerging and The Hartford.
Diversification Opportunities for Origin Emerging and The Hartford
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and THE is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Origin Emerging Markets and The Hartford Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Inflation and Origin Emerging 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 Origin Emerging Markets 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 The Hartford Inflation has no effect on the direction of Origin Emerging i.e., Origin Emerging and The Hartford go up and down completely randomly.
Pair Corralation between Origin Emerging and The Hartford
Assuming the 90 days horizon Origin Emerging Markets is expected to generate 2.72 times more return on investment than The Hartford. However, Origin Emerging is 2.72 times more volatile than The Hartford Inflation. It trades about 0.04 of its potential returns per unit of risk. The Hartford Inflation is currently generating about 0.04 per unit of risk. If you would invest 866.00 in Origin Emerging Markets on August 24, 2024 and sell it today you would earn a total of 159.00 from holding Origin Emerging Markets or generate 18.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Emerging Markets vs. The Hartford Inflation
Performance |
| Timeline |
| Origin Emerging Markets |
| The Hartford Inflation |
Origin Emerging and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Emerging and The Hartford
The main advantage of trading using opposite Origin Emerging and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Emerging 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.| Origin Emerging vs. Invesco Government Fund | Origin Emerging vs. Blackrock Government Bond | Origin Emerging vs. Ab Government Exchange | Origin Emerging vs. Virtus Seix Government |
| The Hartford vs. Franklin Emerging Market | The Hartford vs. Origin Emerging Markets | The Hartford vs. Black Oak Emerging | The Hartford vs. Pnc Emerging Markets |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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