Correlation Between Westcore Small-cap and The Hartford
Can any of the company-specific risk be diversified away by investing in both Westcore Small-cap 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 Westcore Small-cap and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westcore Small Cap Growth and The Hartford Global, you can compare the effects of market volatilities on Westcore Small-cap 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 Westcore Small-cap with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore Small-cap and The Hartford.
Diversification Opportunities for Westcore Small-cap and The Hartford
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Westcore and The is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Westcore Small Cap Growth and The Hartford Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Global and Westcore Small-cap 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 Westcore Small Cap Growth 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 Global has no effect on the direction of Westcore Small-cap i.e., Westcore Small-cap and The Hartford go up and down completely randomly.
Pair Corralation between Westcore Small-cap and The Hartford
Assuming the 90 days horizon Westcore Small Cap Growth is expected to generate 2.85 times more return on investment than The Hartford. However, Westcore Small-cap is 2.85 times more volatile than The Hartford Global. It trades about 0.27 of its potential returns per unit of risk. The Hartford Global is currently generating about -0.09 per unit of risk. If you would invest 2,168 in Westcore Small Cap Growth on August 30, 2024 and sell it today you would earn a total of 196.00 from holding Westcore Small Cap Growth or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westcore Small Cap Growth vs. The Hartford Global
Performance |
| Timeline |
| Westcore Small Cap |
| Hartford Global |
Westcore Small-cap and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore Small-cap and The Hartford
The main advantage of trading using opposite Westcore Small-cap and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore Small-cap 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.| Westcore Small-cap vs. Goldman Sachs Inflation | Westcore Small-cap vs. Aqr Managed Futures | Westcore Small-cap vs. Ab Municipal Bond | Westcore Small-cap vs. Blackrock Inflation Protected |
| The Hartford vs. Capital Income Builder | The Hartford vs. Capital Income Builder | The Hartford vs. Capital Income Builder | The Hartford vs. HUMANA INC |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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