Correlation Between Steward International and The Hartford
Can any of the company-specific risk be diversified away by investing in both Steward International 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 International 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 International Enhanced and The Hartford Global, you can compare the effects of market volatilities on Steward International 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 International with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steward International and The Hartford.
Diversification Opportunities for Steward International and The Hartford
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Steward and The is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Steward International Enhanced and The Hartford Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Global and Steward International 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 International Enhanced 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 Global has no effect on the direction of Steward International i.e., Steward International and The Hartford go up and down completely randomly.
Pair Corralation between Steward International and The Hartford
Assuming the 90 days horizon Steward International Enhanced is expected to generate 1.61 times more return on investment than The Hartford. However, Steward International is 1.61 times more volatile than The Hartford Global. It trades about 0.05 of its potential returns per unit of risk. The Hartford Global is currently generating about 0.03 per unit of risk. If you would invest 1,793 in Steward International Enhanced on August 26, 2024 and sell it today you would earn a total of 283.00 from holding Steward International Enhanced or generate 15.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steward International Enhanced vs. The Hartford Global
Performance |
| Timeline |
| Steward International |
| Hartford Global |
Steward International and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steward International and The Hartford
The main advantage of trading using opposite Steward International and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steward International 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 International vs. The Hartford Global | Steward International vs. T Rowe Price | Steward International vs. Rbb Fund Trust | Steward International vs. Dreyfusstandish Global Fixed |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |