Correlation Between Nasdaq 100 and Hartford International
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Hartford International 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 Nasdaq 100 and Hartford International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Fund Class and The Hartford International, you can compare the effects of market volatilities on Nasdaq 100 and Hartford International 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 Nasdaq 100 with a short position of Hartford International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Hartford International.
Diversification Opportunities for Nasdaq 100 and Hartford International
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nasdaq and Hartford is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Fund Class and The Hartford International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford International and Nasdaq 100 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 Nasdaq 100 Fund Class are associated (or correlated) with Hartford International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford International has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Hartford International go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Hartford International
Assuming the 90 days horizon Nasdaq 100 Fund Class is expected to generate 1.49 times more return on investment than Hartford International. However, Nasdaq 100 is 1.49 times more volatile than The Hartford International. It trades about 0.12 of its potential returns per unit of risk. The Hartford International is currently generating about 0.07 per unit of risk. If you would invest 4,128 in Nasdaq 100 Fund Class on September 12, 2024 and sell it today you would earn a total of 3,853 from holding Nasdaq 100 Fund Class or generate 93.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nasdaq 100 Fund Class vs. The Hartford International
Performance |
| Timeline |
| Nasdaq 100 Fund |
| Hartford International |
Nasdaq 100 and Hartford International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Hartford International
The main advantage of trading using opposite Nasdaq 100 and Hartford International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Hartford International 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 Hartford International will offset losses from the drop in Hartford International's long position.| Nasdaq 100 vs. Nasdaq 100 Fund Class | Nasdaq 100 vs. Nasdaq 100 Fund Class | Nasdaq 100 vs. Nasdaq 100 2x Strategy | Nasdaq 100 vs. Dow 2x Strategy |
| Hartford International vs. Ab Discovery Value | Hartford International vs. Omni Small Cap Value | Hartford International vs. Mutual Of America | Hartford International vs. Boston Partners Small |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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