Correlation Between Steward Funds and The Hartford
Can any of the company-specific risk be diversified away by investing in both Steward Funds 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 Steward Funds and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steward Funds and The Hartford Midcap, you can compare the effects of market volatilities on Steward Funds 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 Steward Funds with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steward Funds and The Hartford.
Diversification Opportunities for Steward Funds and The Hartford
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Steward and The is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Steward Funds and The Hartford Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Midcap and Steward Funds 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 Steward Funds 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 Midcap has no effect on the direction of Steward Funds i.e., Steward Funds and The Hartford go up and down completely randomly.
Pair Corralation between Steward Funds and The Hartford
Assuming the 90 days horizon Steward Funds is expected to generate 1.31 times less return on investment than The Hartford. In addition to that, Steward Funds is 1.03 times more volatile than The Hartford Midcap. It trades about 0.03 of its total potential returns per unit of risk. The Hartford Midcap is currently generating about 0.04 per unit of volatility. If you would invest 2,488 in The Hartford Midcap on September 4, 2024 and sell it today you would earn a total of 584.00 from holding The Hartford Midcap or generate 23.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Steward Funds vs. The Hartford Midcap
Performance |
| Timeline |
| Steward Funds |
| Hartford Midcap |
Steward Funds and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steward Funds and The Hartford
The main advantage of trading using opposite Steward Funds and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steward Funds 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.| Steward Funds vs. Us Government Securities | Steward Funds vs. Lord Abbett Government | Steward Funds vs. Dreyfus Government Cash | Steward Funds vs. Dunham Porategovernment Bond |
| The Hartford vs. Europacific Growth Fund | The Hartford vs. Washington Mutual Investors | The Hartford vs. Wells Fargo Special | The Hartford vs. Mfs 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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