Correlation Between Amcap Fund and The Hartford
Can any of the company-specific risk be diversified away by investing in both Amcap Fund 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 Amcap Fund and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amcap Fund Class and The Hartford Midcap, you can compare the effects of market volatilities on Amcap Fund 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 Amcap Fund with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amcap Fund and The Hartford.
Diversification Opportunities for Amcap Fund and The Hartford
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AMCAP and The is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Amcap Fund Class and The Hartford Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Midcap and Amcap Fund 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 Amcap Fund Class 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 Midcap has no effect on the direction of Amcap Fund i.e., Amcap Fund and The Hartford go up and down completely randomly.
Pair Corralation between Amcap Fund and The Hartford
Assuming the 90 days horizon Amcap Fund Class is expected to generate 0.84 times more return on investment than The Hartford. However, Amcap Fund Class is 1.18 times less risky than The Hartford. It trades about 0.1 of its potential returns per unit of risk. The Hartford Midcap is currently generating about 0.05 per unit of risk. If you would invest 3,098 in Amcap Fund Class on August 31, 2024 and sell it today you would earn a total of 1,597 from holding Amcap Fund Class or generate 51.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amcap Fund Class vs. The Hartford Midcap
Performance |
| Timeline |
| Amcap Fund Class |
| Hartford Midcap |
Amcap Fund and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amcap Fund and The Hartford
The main advantage of trading using opposite Amcap Fund and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amcap Fund 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.| Amcap Fund vs. Bbh Partner Fund | Amcap Fund vs. T Rowe Price | Amcap Fund vs. Qs Large Cap | Amcap Fund vs. Iaadx |
| The Hartford vs. T Rowe Price | The Hartford vs. Amcap Fund Class | The Hartford vs. Ab Small Cap | The Hartford vs. Wells Fargo Special |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |