Correlation Between Hartford Emerging and Jpmorgan Emerging

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

By analyzing existing cross correlation between The Hartford Emerging and Jpmorgan Emerging Markets, you can compare the effects of market volatilities on Hartford Emerging and Jpmorgan Emerging 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 Emerging with a short position of Jpmorgan Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Emerging and Jpmorgan Emerging.

Diversification Opportunities for Hartford Emerging and Jpmorgan Emerging

0.0

Correlation Coefficient

Hartford Emerging  Jpmorgan Emerging

Pay attention - limited upside

The 3 months correlation between Hartford and Jpmorgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Emerging and Jpmorgan Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Emerging Markets and Hartford Emerging 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 Emerging are associated (or correlated) with Jpmorgan Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Emerging Markets has no effect on the direction of Hartford Emerging i.e., Hartford Emerging and Jpmorgan Emerging go up and down completely randomly.

Pair Corralation between Hartford Emerging and Jpmorgan Emerging

If you would invest  417.00  in The Hartford Emerging on December 29, 2024 and sell it today you would earn a total of  14.00  from holding The Hartford Emerging or generate 3.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

The Hartford Emerging  vs.  Jpmorgan Emerging Markets

Hartford Emerging

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Emerging are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Hartford Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan Emerging Markets

Risk-Adjusted Performance

Modest

Over the last 90 days Jpmorgan Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward-looking indicators, Jpmorgan Emerging 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 Emerging and Jpmorgan Emerging

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

The idea behind The Hartford Emerging and Jpmorgan Emerging Markets 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.