Correlation Between Gabelli Convertible and Hartford Growth

Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible and Hartford Growth 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 Gabelli Convertible and Hartford Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gabelli Convertible And and The Hartford Growth, you can compare the effects of market volatilities on Gabelli Convertible and Hartford Growth 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 Gabelli Convertible with a short position of Hartford Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Hartford Growth.

Diversification Opportunities for Gabelli Convertible and Hartford Growth

0.73

Correlation Coefficient

Gabelli Convertible  Hartford Growth

Poor diversification

The 3 months correlation between Gabelli and Hartford is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth and Gabelli Convertible 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 Gabelli Convertible And are associated (or correlated) with Hartford Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Hartford Growth go up and down completely randomly.

Pair Corralation between Gabelli Convertible and Hartford Growth

Considering the 90-day investment horizon Gabelli Convertible And is expected to under-perform the Hartford Growth. In addition to that, Gabelli Convertible is 1.12 times more volatile than The Hartford Growth. It trades about -0.13 of its total potential returns per unit of risk. The Hartford Growth is currently generating about 0.0 per unit of volatility. If you would invest  6,622  in The Hartford Growth on October 4, 2024 and sell it today you would lose (3.00) from holding The Hartford Growth or give up 0.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Gabelli Convertible And  vs.  The Hartford Growth

Gabelli Convertible And

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Convertible And are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable fundamental indicators, Gabelli Convertible is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Hartford Growth

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Growth are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Hartford Growth may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Gabelli Convertible and Hartford Growth

The main advantage of trading using opposite Gabelli Convertible and Hartford Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible position performs unexpectedly, Hartford Growth 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 Growth will offset losses from the drop in Hartford Growth's long position.

The idea behind Gabelli Convertible And and The Hartford Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.