Correlation Between Hartford Schroders and Guggenheim Mid

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

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

Diversification Opportunities for Hartford Schroders and Guggenheim Mid

-0.32

Correlation Coefficient

Hartford Schroders  Guggenheim Mid

Very good diversification

The 3 months correlation between Hartford and Guggenheim is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Schroders Internation and Guggenheim Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Mid Cap and Hartford Schroders 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 Schroders International are associated (or correlated) with Guggenheim Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Mid Cap has no effect on the direction of Hartford Schroders i.e., Hartford Schroders and Guggenheim Mid go up and down completely randomly.

Pair Corralation between Hartford Schroders and Guggenheim Mid

Assuming the 90 days horizon Hartford Schroders International is expected to under-perform the Guggenheim Mid. But the mutual fund apears to be less risky and, when comparing its historical volatility, Hartford Schroders International is 1.29 times less risky than Guggenheim Mid. The mutual fund trades about -0.08 of its potential returns per unit of risk. The Guggenheim Mid Cap is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  4,088  in Guggenheim Mid Cap on August 30, 2024 and sell it today you would earn a total of  246.00  from holding Guggenheim Mid Cap or generate 6.02% return on investment over 90 days.

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

Hartford Schroders Internation  vs.  Guggenheim Mid Cap

Hartford Schroders

Risk-Adjusted Performance

0 of 100

Very Weak

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

Guggenheim Mid Cap

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Mid Cap are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Guggenheim Mid 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 Schroders and Guggenheim Mid

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

The idea behind Hartford Schroders International and Guggenheim Mid Cap 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.