Correlation Between Growth Strategy and The Hartford
Can any of the company-specific risk be diversified away by investing in both Growth Strategy 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 Growth Strategy and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Strategy Fund and The Hartford Servative, you can compare the effects of market volatilities on Growth Strategy 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 Growth Strategy with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Strategy and The Hartford.
Diversification Opportunities for Growth Strategy and The Hartford
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GROWTH and The is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund and The Hartford Servative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Servative and Growth Strategy 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 Growth Strategy Fund 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 Servative has no effect on the direction of Growth Strategy i.e., Growth Strategy and The Hartford go up and down completely randomly.
Pair Corralation between Growth Strategy and The Hartford
Assuming the 90 days horizon Growth Strategy Fund is expected to generate 1.75 times more return on investment than The Hartford. However, Growth Strategy is 1.75 times more volatile than The Hartford Servative. It trades about 0.15 of its potential returns per unit of risk. The Hartford Servative is currently generating about 0.2 per unit of risk. If you would invest 1,313 in Growth Strategy Fund on August 31, 2024 and sell it today you would earn a total of 25.00 from holding Growth Strategy Fund or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Strategy Fund vs. The Hartford Servative
Performance |
| Timeline |
| Growth Strategy |
| The Hartford Servative |
Growth Strategy and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Strategy and The Hartford
The main advantage of trading using opposite Growth Strategy and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Strategy 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.| Growth Strategy vs. American Funds The | Growth Strategy vs. Income Fund Of | Growth Strategy vs. Income Fund Of | Growth Strategy vs. Income Fund Of |
| The Hartford vs. Calvert Emerging Markets | The Hartford vs. Ep Emerging Markets | The Hartford vs. Growth Strategy Fund | The Hartford vs. Rbc 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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