Correlation Between Clearbridge Small and The Hartford

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

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

Diversification Opportunities for Clearbridge Small and The Hartford

0.0

Correlation Coefficient

Clearbridge Small  The Hartford

Pay attention - limited upside

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

Pair Corralation between Clearbridge Small and The Hartford

If you would invest  0.00  in Clearbridge Small Cap on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Clearbridge Small Cap or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Clearbridge Small Cap  vs.  The Hartford Midcap

Clearbridge Small Cap

Risk-Adjusted Performance

Very Weak

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

Hartford Midcap

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Hartford Midcap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Clearbridge Small and The Hartford

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

The idea behind Clearbridge Small Cap and The Hartford Midcap 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.