Correlation Between Hartford Multifactor and Hartford Multifactor

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

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

Diversification Opportunities for Hartford Multifactor and Hartford Multifactor

0.85

Correlation Coefficient

Hartford Multifactor  Hartford Multifactor

Very poor diversification

The 3 months correlation between Hartford and Hartford is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Multifactor Equity and Hartford Multifactor Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Multifactor and Hartford Multifactor 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 Hartford Multifactor Equity are associated (or correlated) with Hartford Multifactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Multifactor has no effect on the direction of Hartford Multifactor i.e., Hartford Multifactor and Hartford Multifactor go up and down completely randomly.

Pair Corralation between Hartford Multifactor and Hartford Multifactor

Given the investment horizon of 90 days Hartford Multifactor Equity is expected to under-perform the Hartford Multifactor. But the etf apears to be less risky and, when comparing its historical volatility, Hartford Multifactor Equity is 1.82 times less risky than Hartford Multifactor. The etf trades about -0.01 of its potential returns per unit of risk. The Hartford Multifactor Small is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  4,249  in Hartford Multifactor Small on October 9, 2024 and sell it today you would earn a total of  97.00  from holding Hartford Multifactor Small or generate 2.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

Hartford Multifactor Equity  vs.  Hartford Multifactor Small

Hartford Multifactor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hartford Multifactor Equity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Hartford Multifactor is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Hartford Multifactor

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hartford Multifactor Small are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Hartford Multifactor is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Hartford Multifactor and Hartford Multifactor

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

The idea behind Hartford Multifactor Equity and Hartford Multifactor Small 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.