Correlation Between Hartford Growth and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Hartford Growth and Credit Suisse 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 Growth and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Growth and Credit Suisse Strategic, you can compare the effects of market volatilities on Hartford Growth and Credit Suisse 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 Growth with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Credit Suisse.
Diversification Opportunities for Hartford Growth and Credit Suisse
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hartford and Credit is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Credit Suisse Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Strategic and Hartford Growth 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 The Hartford Growth are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Strategic has no effect on the direction of Hartford Growth i.e., Hartford Growth and Credit Suisse go up and down completely randomly.
Pair Corralation between Hartford Growth and Credit Suisse
Assuming the 90 days horizon The Hartford Growth is expected to generate 5.86 times more return on investment than Credit Suisse. However, Hartford Growth is 5.86 times more volatile than Credit Suisse Strategic. It trades about 0.13 of its potential returns per unit of risk. Credit Suisse Strategic is currently generating about 0.2 per unit of risk. If you would invest 3,271 in The Hartford Growth on September 26, 2024 and sell it today you would earn a total of 3,530 from holding The Hartford Growth or generate 107.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
The Hartford Growth vs. Credit Suisse Strategic
Performance |
Timeline |
Hartford Growth |
Credit Suisse Strategic |
Hartford Growth and Credit Suisse Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hartford Growth and Credit Suisse
The main advantage of trading using opposite Hartford Growth and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Growth position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.Hartford Growth vs. The Hartford Dividend | Hartford Growth vs. The Hartford Capital | Hartford Growth vs. The Hartford Equity | Hartford Growth vs. The Hartford Midcap |
Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Modity |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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