Correlation Between Gamco Natural and Hartford Capital
Can any of the company-specific risk be diversified away by investing in both Gamco Natural and Hartford Capital 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 Natural and Hartford Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Natural Resources and The Hartford Capital, you can compare the effects of market volatilities on Gamco Natural and Hartford Capital 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 Natural with a short position of Hartford Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Natural and Hartford Capital.
Diversification Opportunities for Gamco Natural and Hartford Capital
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gamco and Hartford is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Natural Resources and The Hartford Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Capital and Gamco Natural 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 Natural Resources are associated (or correlated) with Hartford Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Capital has no effect on the direction of Gamco Natural i.e., Gamco Natural and Hartford Capital go up and down completely randomly.
Pair Corralation between Gamco Natural and Hartford Capital
Assuming the 90 days horizon Gamco Natural is expected to generate 1.32 times less return on investment than Hartford Capital. But when comparing it to its historical volatility, Gamco Natural Resources is 1.38 times less risky than Hartford Capital. It trades about 0.05 of its potential returns per unit of risk. The Hartford Capital is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,298 in The Hartford Capital on September 14, 2024 and sell it today you would earn a total of 285.00 from holding The Hartford Capital or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Natural Resources vs. The Hartford Capital
Performance |
| Timeline |
| Gamco Natural Resources |
| Hartford Capital |
Gamco Natural and Hartford Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Natural and Hartford Capital
The main advantage of trading using opposite Gamco Natural and Hartford Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Natural position performs unexpectedly, Hartford Capital 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 Capital will offset losses from the drop in Hartford Capital's long position.| Gamco Natural vs. Vanguard Total Stock | Gamco Natural vs. Vanguard 500 Index | Gamco Natural vs. Vanguard Total Stock | Gamco Natural vs. Vanguard Total Stock |
| Hartford Capital vs. Short Oil Gas | Hartford Capital vs. Thrivent Natural Resources | Hartford Capital vs. Gamco Natural Resources | Hartford Capital vs. Firsthand Alternative Energy |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |