Correlation Between Hartford Value and Mid Cap

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

By analyzing existing cross correlation between The Hartford Value and Mid Cap 15x Strategy, you can compare the effects of market volatilities on Hartford Value and Mid Cap 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 Value with a short position of Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Value and Mid Cap.

Diversification Opportunities for Hartford Value and Mid Cap

-0.18

Correlation Coefficient

Hartford Value  Mid Cap

Good diversification

The 3 months correlation between Hartford and Mid is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Value and Mid Cap 15x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap 15x and Hartford Value 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 Value are associated (or correlated) with Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap 15x has no effect on the direction of Hartford Value i.e., Hartford Value and Mid Cap go up and down completely randomly.

Pair Corralation between Hartford Value and Mid Cap

If you would invest  2,443  in The Hartford Value on October 11, 2024 and sell it today you would earn a total of  0.00  from holding The Hartford Value or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	2.5%
Values	Daily Returns

The Hartford Value  vs.  Mid Cap 15x Strategy

Hartford Value

Risk-Adjusted Performance

0 of 100

Very Weak

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

Mid Cap 15x

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mid Cap 15x Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Mid Cap 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 Value and Mid Cap

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

The idea behind The Hartford Value and Mid Cap 15x Strategy 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 Transaction History module to view history of all your transactions and understand their impact on performance.