Correlation Between Simt Multi and Hartford Total
Can any of the company-specific risk be diversified away by investing in both Simt Multi and Hartford Total 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 Simt Multi and Hartford Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Inflation and The Hartford Total, you can compare the effects of market volatilities on Simt Multi and Hartford Total 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 Simt Multi with a short position of Hartford Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Hartford Total.
Diversification Opportunities for Simt Multi and Hartford Total
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Simt and Hartford is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and The Hartford Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Total and Simt Multi 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 Simt Multi Asset Inflation are associated (or correlated) with Hartford Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Total has no effect on the direction of Simt Multi i.e., Simt Multi and Hartford Total go up and down completely randomly.
Pair Corralation between Simt Multi and Hartford Total
Assuming the 90 days horizon Simt Multi is expected to generate 2.6 times less return on investment than Hartford Total. But when comparing it to its historical volatility, Simt Multi Asset Inflation is 1.59 times less risky than Hartford Total. It trades about 0.03 of its potential returns per unit of risk. The Hartford Total is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 820.00 in The Hartford Total on September 12, 2024 and sell it today you would earn a total of 86.00 from holding The Hartford Total or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. The Hartford Total
Performance |
| Timeline |
| Simt Multi Asset |
| Hartford Total |
Simt Multi and Hartford Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi and Hartford Total
The main advantage of trading using opposite Simt Multi and Hartford Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi position performs unexpectedly, Hartford Total 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 Total will offset losses from the drop in Hartford Total's long position.| Simt Multi vs. Capital Income Builder | Simt Multi vs. Capital Income Builder | Simt Multi vs. Capital Income Builder | Simt Multi vs. Capital Income Builder |
| Hartford Total vs. Guidepath Managed Futures | Hartford Total vs. Simt Multi Asset Inflation | Hartford Total vs. Arrow Managed Futures | Hartford Total vs. Short Duration Inflation |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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