Correlation Between Valic Company and Hartford Moderate
Can any of the company-specific risk be diversified away by investing in both Valic Company and Hartford Moderate 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 Valic Company and Hartford Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Hartford Moderate Allocation, you can compare the effects of market volatilities on Valic Company and Hartford Moderate 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 Valic Company with a short position of Hartford Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Hartford Moderate.
Diversification Opportunities for Valic Company and Hartford Moderate
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valic and Hartford is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Hartford Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Moderate and Valic Company 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 Valic Company I are associated (or correlated) with Hartford Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Moderate has no effect on the direction of Valic Company i.e., Valic Company and Hartford Moderate go up and down completely randomly.
Pair Corralation between Valic Company and Hartford Moderate
Assuming the 90 days horizon Valic Company is expected to generate 1.15 times less return on investment than Hartford Moderate. In addition to that, Valic Company is 2.58 times more volatile than Hartford Moderate Allocation. It trades about 0.03 of its total potential returns per unit of risk. Hartford Moderate Allocation is currently generating about 0.08 per unit of volatility. If you would invest 1,072 in Hartford Moderate Allocation on October 23, 2024 and sell it today you would earn a total of 226.00 from holding Hartford Moderate Allocation or generate 21.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Hartford Moderate Allocation
Performance |
| Timeline |
| Valic Company I |
| Hartford Moderate |
Valic Company and Hartford Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Hartford Moderate
The main advantage of trading using opposite Valic Company and Hartford Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Hartford Moderate 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 Moderate will offset losses from the drop in Hartford Moderate's long position.| Valic Company vs. Tiaa Cref Life Funds | Valic Company vs. Franklin Government Money | Valic Company vs. Bbh Trust | Valic Company vs. Pace Select Advisors |
| Hartford Moderate vs. Lsv Small Cap | Hartford Moderate vs. Valic Company I | Hartford Moderate vs. Mid Cap Value Profund | Hartford Moderate vs. Vanguard Small Cap Value |
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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