Correlation Between Upright Growth and The Hartford
Can any of the company-specific risk be diversified away by investing in both Upright 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 Upright 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 Upright Growth Fund and The Hartford Midcap, you can compare the effects of market volatilities on Upright 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 Upright Growth with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upright Growth and The Hartford.
Diversification Opportunities for Upright Growth and The Hartford
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Upright and The is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Upright Growth Fund and The Hartford Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Midcap and Upright 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 Upright 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 Midcap has no effect on the direction of Upright Growth i.e., Upright Growth and The Hartford go up and down completely randomly.
Pair Corralation between Upright Growth and The Hartford
Assuming the 90 days horizon Upright 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, Upright Growth Fund is 1.07 times less risky than The Hartford. The mutual fund trades about -0.15 of its potential returns per unit of risk. The The Hartford Midcap is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,844 in The Hartford Midcap on August 31, 2024 and sell it today you would earn a total of 215.00 from holding The Hartford Midcap or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Upright Growth Fund vs. The Hartford Midcap
Performance |
| Timeline |
| Upright Growth |
| Hartford Midcap |
Upright Growth and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upright Growth and The Hartford
The main advantage of trading using opposite Upright Growth and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upright 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.| Upright Growth vs. Wisdomtree Siegel Moderate | Upright Growth vs. Multimanager Lifestyle Moderate | Upright Growth vs. Fidelity Managed Retirement | Upright Growth vs. Target Retirement 2040 |
| The Hartford vs. T Rowe Price | The Hartford vs. T Rowe Price | The Hartford vs. T Rowe Price | The Hartford vs. T Rowe Price |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |