Correlation Between Syntax and Hartford Multifactor
Can any of the company-specific risk be diversified away by investing in both Syntax and Hartford Multifactor 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 Syntax and Hartford Multifactor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Syntax and Hartford Multifactor Small, you can compare the effects of market volatilities on Syntax and Hartford Multifactor 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 Syntax with a short position of Hartford Multifactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Syntax and Hartford Multifactor.
Diversification Opportunities for Syntax and Hartford Multifactor
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Syntax and Hartford is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Syntax and Hartford Multifactor Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Multifactor and Syntax 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 Syntax are associated (or correlated) with Hartford Multifactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Multifactor has no effect on the direction of Syntax i.e., Syntax and Hartford Multifactor go up and down completely randomly.
Pair Corralation between Syntax and Hartford Multifactor
If you would invest 4,373 in Hartford Multifactor Small on October 20, 2024 and sell it today you would earn a total of 54.00 from holding Hartford Multifactor Small or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Syntax vs. Hartford Multifactor Small
Performance |
| Timeline |
| Syntax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hartford Multifactor |
Syntax and Hartford Multifactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Syntax and Hartford Multifactor
The main advantage of trading using opposite Syntax and Hartford Multifactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Syntax position performs unexpectedly, Hartford Multifactor 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 Multifactor will offset losses from the drop in Hartford Multifactor's long position.| Syntax vs. Vanguard Small Cap Index | Syntax vs. iShares Core SP | Syntax vs. iShares Russell 2000 | Syntax vs. Vanguard Russell 2000 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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