Correlation Between Smead Value and Hartford Global
Can any of the company-specific risk be diversified away by investing in both Smead Value and Hartford Global 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 Smead Value and Hartford Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smead Value Fund and Hartford Global Impact, you can compare the effects of market volatilities on Smead Value and Hartford Global 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 Smead Value with a short position of Hartford Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smead Value and Hartford Global.
Diversification Opportunities for Smead Value and Hartford Global
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Smead and Hartford is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Smead Value Fund and Hartford Global Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Global Impact and Smead Value 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 Smead Value Fund are associated (or correlated) with Hartford Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Global Impact has no effect on the direction of Smead Value i.e., Smead Value and Hartford Global go up and down completely randomly.
Pair Corralation between Smead Value and Hartford Global
Assuming the 90 days horizon Smead Value Fund is expected to under-perform the Hartford Global. In addition to that, Smead Value is 1.24 times more volatile than Hartford Global Impact. It trades about -0.15 of its total potential returns per unit of risk. Hartford Global Impact is currently generating about 0.04 per unit of volatility. If you would invest 1,606 in Hartford Global Impact on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Hartford Global Impact or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Smead Value Fund vs. Hartford Global Impact
Performance |
| Timeline |
| Smead Value Fund |
| Hartford Global Impact |
Smead Value and Hartford Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smead Value and Hartford Global
The main advantage of trading using opposite Smead Value and Hartford Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smead Value position performs unexpectedly, Hartford Global 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 Global will offset losses from the drop in Hartford Global's long position.| Smead Value vs. Vanguard Value Index | Smead Value vs. Dodge Cox Stock | Smead Value vs. American Mutual Fund | Smead Value vs. American Funds American |
| Hartford Global vs. Third Avenue Real | Hartford Global vs. Third Avenue Small Cap | Hartford Global vs. Smead Value Fund | Hartford Global vs. Baron Focused 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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