Correlation Between Hartford Growth and Dunham Focused
Can any of the company-specific risk be diversified away by investing in both Hartford Growth and Dunham Focused 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 Dunham Focused 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 Dunham Focused Large, you can compare the effects of market volatilities on Hartford Growth and Dunham Focused 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 Dunham Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Dunham Focused.
Diversification Opportunities for Hartford Growth and Dunham Focused
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hartford and Dunham is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Dunham Focused Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Focused Large 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 Dunham Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Focused Large has no effect on the direction of Hartford Growth i.e., Hartford Growth and Dunham Focused go up and down completely randomly.
Pair Corralation between Hartford Growth and Dunham Focused
Assuming the 90 days horizon The Hartford Growth is expected to generate 0.99 times more return on investment than Dunham Focused. However, The Hartford Growth is 1.01 times less risky than Dunham Focused. It trades about 0.13 of its potential returns per unit of risk. Dunham Focused Large is currently generating about 0.12 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 | Very Strong |
Accuracy | 99.8% |
Values | Daily Returns |
The Hartford Growth vs. Dunham Focused Large
Performance |
Timeline |
Hartford Growth |
Dunham Focused Large |
Hartford Growth and Dunham Focused Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hartford Growth and Dunham Focused
The main advantage of trading using opposite Hartford Growth and Dunham Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Growth position performs unexpectedly, Dunham Focused 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 Dunham Focused will offset losses from the drop in Dunham Focused'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 |
Dunham Focused vs. Dunham Dynamic Macro | Dunham Focused vs. Dunham Appreciation Income | Dunham Focused vs. Dunham Porategovernment Bond | Dunham Focused vs. Dunham Small Cap |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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