Correlation Between Thornburg Investment and The Hartford
Can any of the company-specific risk be diversified away by investing in both Thornburg Investment 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 Thornburg Investment and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg Investment Trust and The Hartford Equity, you can compare the effects of market volatilities on Thornburg Investment 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 Thornburg Investment with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Investment and The Hartford.
Diversification Opportunities for Thornburg Investment and The Hartford
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thornburg and The is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Investment Trust and The Hartford Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Equity and Thornburg Investment 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 Thornburg Investment Trust 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 Equity has no effect on the direction of Thornburg Investment i.e., Thornburg Investment and The Hartford go up and down completely randomly.
Pair Corralation between Thornburg Investment and The Hartford
Assuming the 90 days horizon Thornburg Investment is expected to generate 2.75 times less return on investment than The Hartford. But when comparing it to its historical volatility, Thornburg Investment Trust is 1.05 times less risky than The Hartford. It trades about 0.01 of its potential returns per unit of risk. The Hartford Equity is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,161 in The Hartford Equity on August 30, 2024 and sell it today you would earn a total of 127.00 from holding The Hartford Equity or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 59.19% |
| Values | Daily Returns |
Thornburg Investment Trust vs. The Hartford Equity
Performance |
| Timeline |
| Thornburg Investment |
| Hartford Equity |
Thornburg Investment and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Investment and The Hartford
The main advantage of trading using opposite Thornburg Investment and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Investment 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.| Thornburg Investment vs. Vanguard Emerging Markets | Thornburg Investment vs. Vanguard Emerging Markets | Thornburg Investment vs. HUMANA INC | Thornburg Investment vs. Aquagold International |
| The Hartford vs. The Hartford Dividend | The Hartford vs. The Hartford Total | The Hartford vs. The Hartford International | The Hartford vs. The Hartford Midcap |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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