Correlation Between Hartford Schroders and Federated International

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

By analyzing existing cross correlation between Hartford Schroders Smallmid and Federated International Strategic, you can compare the effects of market volatilities on Hartford Schroders and Federated International 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 Federated International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Schroders and Federated International.

Diversification Opportunities for Hartford Schroders and Federated International

-0.8

Correlation Coefficient

Hartford Schroders  Federated International

Pay attention - limited upside

The 3 months correlation between Hartford and Federated is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Schroders Smallmid and Federated International Strate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated International 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 Smallmid are associated (or correlated) with Federated International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated International has no effect on the direction of Hartford Schroders i.e., Hartford Schroders and Federated International go up and down completely randomly.

Pair Corralation between Hartford Schroders and Federated International

Assuming the 90 days horizon Hartford Schroders Smallmid is expected to generate 1.33 times more return on investment than Federated International. However, Hartford Schroders is 1.33 times more volatile than Federated International Strategic. It trades about 0.25 of its potential returns per unit of risk. Federated International Strategic is currently generating about -0.14 per unit of risk. If you would invest  1,884  in Hartford Schroders Smallmid on September 5, 2024 and sell it today you would earn a total of  210.00  from holding Hartford Schroders Smallmid or generate 11.15% return on investment over 90 days.

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

Hartford Schroders Smallmid  vs.  Federated International Strate

Hartford Schroders

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hartford Schroders Smallmid are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Hartford Schroders may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Federated International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Federated International Strategic has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Federated International 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 Federated International

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

The idea behind Hartford Schroders Smallmid and Federated International Strategic 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.