Correlation Between Firsthand Technology and Hartford Global
Can any of the company-specific risk be diversified away by investing in both Firsthand Technology 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 Firsthand Technology and Hartford Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Technology Opportunities and Hartford Global Impact, you can compare the effects of market volatilities on Firsthand Technology 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 Firsthand Technology with a short position of Hartford Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Technology and Hartford Global.
Diversification Opportunities for Firsthand Technology and Hartford Global
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Firsthand and Hartford is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Opportuni 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 Firsthand Technology 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 Firsthand Technology Opportunities 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 Firsthand Technology i.e., Firsthand Technology and Hartford Global go up and down completely randomly.
Pair Corralation between Firsthand Technology and Hartford Global
Assuming the 90 days horizon Firsthand Technology is expected to generate 1.61 times less return on investment than Hartford Global. In addition to that, Firsthand Technology is 2.01 times more volatile than Hartford Global Impact. It trades about 0.03 of its total potential returns per unit of risk. Hartford Global Impact is currently generating about 0.1 per unit of volatility. If you would invest 1,453 in Hartford Global Impact on September 3, 2024 and sell it today you would earn a total of 157.00 from holding Hartford Global Impact or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Technology Opportuni vs. Hartford Global Impact
Performance |
| Timeline |
| Firsthand Technology |
| Hartford Global Impact |
Firsthand Technology and Hartford Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Technology and Hartford Global
The main advantage of trading using opposite Firsthand Technology and Hartford Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Technology 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.The idea behind Firsthand Technology Opportunities and Hartford Global Impact pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Hartford Global vs. Columbia Global Technology | Hartford Global vs. Science Technology Fund | Hartford Global vs. Firsthand Technology Opportunities | Hartford Global vs. Towpath Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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