Correlation Between Templeton Growth and The Hartford
Can any of the company-specific risk be diversified away by investing in both Templeton Growth 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 Templeton Growth and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Growth Fund and The Hartford Growth, you can compare the effects of market volatilities on Templeton Growth 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 Templeton Growth with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Growth and The Hartford.
Diversification Opportunities for Templeton Growth and The Hartford
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Templeton and The is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Growth Fund and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth and Templeton Growth 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 Templeton Growth Fund 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 Growth has no effect on the direction of Templeton Growth i.e., Templeton Growth and The Hartford go up and down completely randomly.
Pair Corralation between Templeton Growth and The Hartford
Assuming the 90 days horizon Templeton Growth Fund is expected to under-perform the The Hartford. But the mutual fund apears to be less risky and, when comparing its historical volatility, Templeton Growth Fund is 1.55 times less risky than The Hartford. The mutual fund trades about -0.26 of its potential returns per unit of risk. The The Hartford Growth is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 6,887 in The Hartford Growth on October 12, 2024 and sell it today you would lose (64.00) from holding The Hartford Growth or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Growth Fund vs. The Hartford Growth
Performance |
| Timeline |
| Templeton Growth |
| Hartford Growth |
Templeton Growth and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Growth and The Hartford
The main advantage of trading using opposite Templeton Growth and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Growth 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.| Templeton Growth vs. Federated Global Allocation | Templeton Growth vs. Kinetics Global Fund | Templeton Growth vs. Investec Global Franchise | Templeton Growth vs. Barings Global Floating |
| The Hartford vs. Alger Health Sciences | The Hartford vs. Invesco Global Health | The Hartford vs. Alphacentric Lifesci Healthcare | The Hartford vs. Delaware Healthcare Fund |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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