Correlation Between Hartford Large and Grizzle Growth

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

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

Diversification Opportunities for Hartford Large and Grizzle Growth

0.41

Correlation Coefficient

Hartford Large  Grizzle Growth

Very weak diversification

The 3 months correlation between Hartford and Grizzle is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Large Cap and Grizzle Growth ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grizzle Growth ETF and Hartford Large 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 Hartford Large Cap are associated (or correlated) with Grizzle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grizzle Growth ETF has no effect on the direction of Hartford Large i.e., Hartford Large and Grizzle Growth go up and down completely randomly.

Pair Corralation between Hartford Large and Grizzle Growth

Given the investment horizon of 90 days Hartford Large Cap is expected to generate 0.73 times more return on investment than Grizzle Growth. However, Hartford Large Cap is 1.37 times less risky than Grizzle Growth. It trades about 0.1 of its potential returns per unit of risk. Grizzle Growth ETF is currently generating about 0.03 per unit of risk. If you would invest  2,308  in Hartford Large Cap on October 11, 2024 and sell it today you would earn a total of  100.00  from holding Hartford Large Cap or generate 4.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	97.56%
Values	Daily Returns

Hartford Large Cap  vs.  Grizzle Growth ETF

Hartford Large Cap

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hartford Large Cap are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Hartford Large may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Grizzle Growth ETF

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Grizzle Growth ETF are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Grizzle Growth is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hartford Large and Grizzle Growth

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

The idea behind Hartford Large Cap and Grizzle Growth ETF 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.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.