Correlation Between Gamco Global and Hartford Global
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Hartford Global 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 Gamco Global and Hartford Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Global Gold and Hartford Global Impact, you can compare the effects of market volatilities on Gamco Global and Hartford Global 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 Gamco Global with a short position of Hartford Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Hartford Global.
Diversification Opportunities for Gamco Global and Hartford Global
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gamco and Hartford is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Gold and Hartford Global Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Global Impact and Gamco Global 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 Gamco Global Gold are associated (or correlated) with Hartford Global. 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 Impact has no effect on the direction of Gamco Global i.e., Gamco Global and Hartford Global go up and down completely randomly.
Pair Corralation between Gamco Global and Hartford Global
Assuming the 90 days horizon Gamco Global is expected to generate 2.95 times less return on investment than Hartford Global. In addition to that, Gamco Global is 1.05 times more volatile than Hartford Global Impact. It trades about 0.02 of its total potential returns per unit of risk. Hartford Global Impact is currently generating about 0.07 per unit of volatility. If you would invest 1,322 in Hartford Global Impact on September 2, 2024 and sell it today you would earn a total of 298.00 from holding Hartford Global Impact or generate 22.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Global Gold vs. Hartford Global Impact
Performance |
| Timeline |
| Gamco Global Gold |
| Hartford Global Impact |
Gamco Global and Hartford Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Hartford Global
The main advantage of trading using opposite Gamco Global and Hartford Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Hartford Global 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 Global will offset losses from the drop in Hartford Global's long position.| Gamco Global vs. Dunham Porategovernment Bond | Gamco Global vs. Virtus Seix Government | Gamco Global vs. Blackrock Government Bond | Gamco Global vs. Lord Abbett Government |
| Hartford Global vs. The Hartford Growth | Hartford Global vs. The Hartford Growth | Hartford Global vs. The Hartford Growth | Hartford Global vs. The Hartford Growth |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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