Correlation Between Hartford Multifactor and IShares Equity
Can any of the company-specific risk be diversified away by investing in both Hartford Multifactor and IShares Equity 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 Hartford Multifactor and IShares Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Multifactor Emerging and iShares Equity Factor, you can compare the effects of market volatilities on Hartford Multifactor and IShares Equity 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 Hartford Multifactor with a short position of IShares Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Multifactor and IShares Equity.
Diversification Opportunities for Hartford Multifactor and IShares Equity
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hartford and IShares is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Multifactor Emerging and iShares Equity Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Equity Factor and Hartford Multifactor 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 Hartford Multifactor Emerging are associated (or correlated) with IShares Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Equity Factor has no effect on the direction of Hartford Multifactor i.e., Hartford Multifactor and IShares Equity go up and down completely randomly.
Pair Corralation between Hartford Multifactor and IShares Equity
Given the investment horizon of 90 days Hartford Multifactor Emerging is expected to under-perform the IShares Equity. But the etf apears to be less risky and, when comparing its historical volatility, Hartford Multifactor Emerging is 1.17 times less risky than IShares Equity. The etf trades about -0.26 of its potential returns per unit of risk. The iShares Equity Factor is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 5,954 in iShares Equity Factor on August 29, 2024 and sell it today you would earn a total of 300.00 from holding iShares Equity Factor or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Multifactor Emerging vs. iShares Equity Factor
Performance |
| Timeline |
| Hartford Multifactor |
| iShares Equity Factor |
Hartford Multifactor and IShares Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Multifactor and IShares Equity
The main advantage of trading using opposite Hartford Multifactor and IShares Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Multifactor position performs unexpectedly, IShares Equity 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 IShares Equity will offset losses from the drop in IShares Equity's long position.| Hartford Multifactor vs. ABIVAX Socit Anonyme | Hartford Multifactor vs. HUMANA INC | Hartford Multifactor vs. SCOR PK | Hartford Multifactor vs. Aquagold International |
| IShares Equity vs. JPMorgan BetaBuilders International | IShares Equity vs. JPMorgan Core Plus | IShares Equity vs. JPMorgan BetaBuilders Canada | IShares Equity vs. JPMorgan 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |