Correlation Between Sentinel Common and The Hartford
Can any of the company-specific risk be diversified away by investing in both Sentinel Common 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 Sentinel Common and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentinel Mon Stock and The Hartford Floating, you can compare the effects of market volatilities on Sentinel Common 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 Sentinel Common with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentinel Common and The Hartford.
Diversification Opportunities for Sentinel Common and The Hartford
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sentinel and The is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sentinel Mon Stock and The Hartford Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Floating and Sentinel Common 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 Sentinel Mon Stock 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 Floating has no effect on the direction of Sentinel Common i.e., Sentinel Common and The Hartford go up and down completely randomly.
Pair Corralation between Sentinel Common and The Hartford
Assuming the 90 days horizon Sentinel Mon Stock is expected to generate 9.89 times more return on investment than The Hartford. However, Sentinel Common is 9.89 times more volatile than The Hartford Floating. It trades about 0.29 of its potential returns per unit of risk. The Hartford Floating is currently generating about 0.18 per unit of risk. If you would invest 6,961 in Sentinel Mon Stock on September 1, 2024 and sell it today you would earn a total of 308.00 from holding Sentinel Mon Stock or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sentinel Mon Stock vs. The Hartford Floating
Performance |
| Timeline |
| Sentinel Mon Stock |
| Hartford Floating |
Sentinel Common and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentinel Common and The Hartford
The main advantage of trading using opposite Sentinel Common and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentinel Common 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.| Sentinel Common vs. Sentinel Small Pany | Sentinel Common vs. Sentinel Balanced Fund | Sentinel Common vs. Sentinel International Equity | Sentinel Common vs. Touchstone Sands Capital |
| The Hartford vs. Lord Abbett Diversified | The Hartford vs. Small Cap Stock | The Hartford vs. Oppenheimer International Diversified | The Hartford vs. Adams Diversified Equity |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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