Correlation Between Hartford Growth and Kinetics Global

Can any of the company-specific risk be diversified away by investing in both Hartford Growth and Kinetics Global 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 Kinetics Global 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 Kinetics Global Fund, you can compare the effects of market volatilities on Hartford Growth and Kinetics Global 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 Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Kinetics Global.

Diversification Opportunities for Hartford Growth and Kinetics Global

0.02

Correlation Coefficient

Hartford Growth  Kinetics Global

Significant diversification

The 3 months correlation between Hartford and Kinetics is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global 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 Kinetics Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Global has no effect on the direction of Hartford Growth i.e., Hartford Growth and Kinetics Global go up and down completely randomly.

Pair Corralation between Hartford Growth and Kinetics Global

Assuming the 90 days horizon The Hartford Growth is expected to generate 1.15 times more return on investment than Kinetics Global. However, Hartford Growth is 1.15 times more volatile than Kinetics Global Fund. It trades about -0.02 of its potential returns per unit of risk. Kinetics Global Fund is currently generating about -0.08 per unit of risk. If you would invest  7,518  in The Hartford Growth on December 1, 2024 and sell it today you would lose (168.00) from holding The Hartford Growth or give up 2.23% of portfolio value over 90 days.

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

The Hartford Growth  vs.  Kinetics Global Fund

Hartford Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Hartford Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Hartford Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kinetics Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kinetics Global Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Kinetics Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hartford Growth and Kinetics Global

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

The idea behind The Hartford Growth and Kinetics Global Fund 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.