Correlation Between Hartford Multifactor and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Hartford Multifactor and IShares MSCI 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 MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Multifactor Developed and iShares MSCI USA, you can compare the effects of market volatilities on Hartford Multifactor and IShares MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Multifactor and IShares MSCI.
Diversification Opportunities for Hartford Multifactor and IShares MSCI
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hartford and IShares is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Multifactor Developed and iShares MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI USA 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 Developed are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI USA has no effect on the direction of Hartford Multifactor i.e., Hartford Multifactor and IShares MSCI go up and down completely randomly.
Pair Corralation between Hartford Multifactor and IShares MSCI
Given the investment horizon of 90 days Hartford Multifactor Developed is expected to under-perform the IShares MSCI. But the etf apears to be less risky and, when comparing its historical volatility, Hartford Multifactor Developed is 2.07 times less risky than IShares MSCI. The etf trades about -0.14 of its potential returns per unit of risk. The iShares MSCI USA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 6,635 in iShares MSCI USA on August 29, 2024 and sell it today you would earn a total of 732.00 from holding iShares MSCI USA or generate 11.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Multifactor Developed vs. iShares MSCI USA
Performance |
| Timeline |
| Hartford Multifactor |
| iShares MSCI USA |
Hartford Multifactor and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Multifactor and IShares MSCI
The main advantage of trading using opposite Hartford Multifactor and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Multifactor position performs unexpectedly, IShares MSCI 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 MSCI will offset losses from the drop in IShares MSCI's long position.| Hartford Multifactor vs. Goldman Sachs ActiveBeta | Hartford Multifactor vs. Hartford Multifactor Equity | Hartford Multifactor vs. iShares Edge MSCI | Hartford Multifactor vs. Hartford Multifactor Emerging |
| IShares MSCI vs. Vanguard Mid Cap Index | IShares MSCI vs. Vanguard Small Cap Value | IShares MSCI vs. Vanguard FTSE Emerging | IShares MSCI vs. Vanguard Large Cap Index |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |