Correlation Between Saat Moderate and The Hartford
Can any of the company-specific risk be diversified away by investing in both Saat Moderate 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 Saat Moderate and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Moderate Strategy and The Hartford Balanced, you can compare the effects of market volatilities on Saat Moderate 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 Saat Moderate with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and The Hartford.
Diversification Opportunities for Saat Moderate and The Hartford
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saat and The is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and The Hartford Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Balanced and Saat Moderate 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 Saat Moderate Strategy 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 Balanced has no effect on the direction of Saat Moderate i.e., Saat Moderate and The Hartford go up and down completely randomly.
Pair Corralation between Saat Moderate and The Hartford
Assuming the 90 days horizon Saat Moderate Strategy is expected to generate 0.62 times more return on investment than The Hartford. However, Saat Moderate Strategy is 1.62 times less risky than The Hartford. It trades about -0.38 of its potential returns per unit of risk. The Hartford Balanced is currently generating about -0.39 per unit of risk. If you would invest 1,193 in Saat Moderate Strategy on October 9, 2024 and sell it today you would lose (48.00) from holding Saat Moderate Strategy or give up 4.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Moderate Strategy vs. The Hartford Balanced
Performance |
| Timeline |
| Saat Moderate Strategy |
| Hartford Balanced |
Saat Moderate and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Moderate and The Hartford
The main advantage of trading using opposite Saat Moderate and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate 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.| Saat Moderate vs. Alpine Ultra Short | Saat Moderate vs. Blrc Sgy Mnp | Saat Moderate vs. Pioneer Amt Free Municipal | Saat Moderate vs. Nuveen Strategic Municipal |
| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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