Correlation Between Siit High and Hartford Capital
Can any of the company-specific risk be diversified away by investing in both Siit High and Hartford Capital 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 Siit High and Hartford Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Hartford Capital Appreciation, you can compare the effects of market volatilities on Siit High and Hartford Capital 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 Siit High with a short position of Hartford Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Hartford Capital.
Diversification Opportunities for Siit High and Hartford Capital
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and Hartford is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Hartford Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Capital App and Siit High 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 Siit High Yield are associated (or correlated) with Hartford Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Capital App has no effect on the direction of Siit High i.e., Siit High and Hartford Capital go up and down completely randomly.
Pair Corralation between Siit High and Hartford Capital
Assuming the 90 days horizon Siit High is expected to generate 2.11 times less return on investment than Hartford Capital. But when comparing it to its historical volatility, Siit High Yield is 3.46 times less risky than Hartford Capital. It trades about 0.21 of its potential returns per unit of risk. Hartford Capital Appreciation is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,979 in Hartford Capital Appreciation on September 1, 2024 and sell it today you would earn a total of 659.00 from holding Hartford Capital Appreciation or generate 13.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Hartford Capital Appreciation
Performance |
| Timeline |
| Siit High Yield |
| Hartford Capital App |
Siit High and Hartford Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Hartford Capital
The main advantage of trading using opposite Siit High and Hartford Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Hartford Capital 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 Capital will offset losses from the drop in Hartford Capital's long position.| Siit High vs. Simt Multi Asset Accumulation | Siit High vs. Saat Market Growth | Siit High vs. Simt Real Return | Siit High vs. Simt Small Cap |
| Hartford Capital vs. The Hartford Growth | Hartford Capital vs. The Hartford Growth | Hartford Capital vs. The Hartford Growth | Hartford Capital vs. The Hartford Growth |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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