Correlation Between Hartford Total and IShares Core
Can any of the company-specific risk be diversified away by investing in both Hartford Total and IShares Core 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 Total and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Total Return and iShares Core 5 10, you can compare the effects of market volatilities on Hartford Total and IShares Core 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 Total with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Total and IShares Core.
Diversification Opportunities for Hartford Total and IShares Core
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hartford and IShares is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Total Return and iShares Core 5 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core 5 and Hartford Total 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 Total Return are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core 5 has no effect on the direction of Hartford Total i.e., Hartford Total and IShares Core go up and down completely randomly.
Pair Corralation between Hartford Total and IShares Core
Given the investment horizon of 90 days Hartford Total Return is expected to generate 0.96 times more return on investment than IShares Core. However, Hartford Total Return is 1.04 times less risky than IShares Core. It trades about -0.22 of its potential returns per unit of risk. iShares Core 5 10 is currently generating about -0.23 per unit of risk. If you would invest 3,355 in Hartford Total Return on January 20, 2024 and sell it today you would lose (69.00) from holding Hartford Total Return or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Total Return vs. iShares Core 5 10
Performance |
| Timeline |
| Hartford Total Return |
| iShares Core 5 |
Hartford Total and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Total and IShares Core
The main advantage of trading using opposite Hartford Total and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Total position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| Hartford Total vs. SPDR SSGA Sector | Hartford Total vs. SPDR DoubleLine Emerging | Hartford Total vs. SPDR DoubleLine Short | Hartford Total vs. SPDR SSgA Ultra |
| IShares Core vs. SPDR SSGA Sector | IShares Core vs. SPDR DoubleLine Emerging | IShares Core vs. SPDR DoubleLine Short | IShares Core vs. SPDR SSgA Ultra |
Check out your portfolio center.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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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