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 Small, 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
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Origin and The is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Origin Emerging Markets and The Hartford Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small 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 Hartford Small 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 under-perform the The Hartford. But the mutual fund apears to be less risky and, when comparing its historical volatility, Origin Emerging Markets is 1.72 times less risky than The Hartford. The mutual fund trades about -0.09 of its potential returns per unit of risk. The The Hartford Small is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,903 in The Hartford Small on September 3, 2024 and sell it today you would earn a total of 250.00 from holding The Hartford Small or generate 8.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Emerging Markets vs. The Hartford Small
Performance |
| Timeline |
| Origin Emerging Markets |
| Hartford Small |
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. Blackrock Financial Institutions | Origin Emerging vs. Mesirow Financial Small | Origin Emerging vs. Angel Oak Financial | Origin Emerging vs. Icon Financial Fund |
| The Hartford vs. The Hartford Midcap | The Hartford vs. Mfs Emerging Markets | The Hartford vs. Wells Fargo Special | The Hartford vs. Washington Mutual Investors |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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