Correlation Between Hartford Growth and First Trust
Can any of the company-specific risk be diversified away by investing in both Hartford Growth and First Trust 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 First Trust 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 First Trust New, you can compare the effects of market volatilities on Hartford Growth and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and First Trust.
Diversification Opportunities for Hartford Growth and First Trust
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and First is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and First Trust New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust New 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust New has no effect on the direction of Hartford Growth i.e., Hartford Growth and First Trust go up and down completely randomly.
Pair Corralation between Hartford Growth and First Trust
If you would invest 5,725 in The Hartford Growth on September 25, 2024 and sell it today you would earn a total of 186.00 from holding The Hartford Growth or generate 3.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 5.0% |
Values | Daily Returns |
The Hartford Growth vs. First Trust New
Performance |
Timeline |
Hartford Growth |
First Trust New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hartford Growth and First Trust Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hartford Growth and First Trust
The main advantage of trading using opposite Hartford Growth and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Growth position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.Hartford Growth vs. T Rowe Price | Hartford Growth vs. Versatile Bond Portfolio | Hartford Growth vs. Ishares Municipal Bond | Hartford Growth vs. Dreyfusstandish Global Fixed |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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