Correlation Between Hartford Growth and Amcap Fund
Can any of the company-specific risk be diversified away by investing in both Hartford Growth and Amcap Fund 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 Growth and Amcap Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Growth and Amcap Fund Class, you can compare the effects of market volatilities on Hartford Growth and Amcap Fund 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 Growth with a short position of Amcap Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Amcap Fund.
Diversification Opportunities for Hartford Growth and Amcap Fund
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hartford and Amcap is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Amcap Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcap Fund Class and Hartford Growth 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 The Hartford Growth are associated (or correlated) with Amcap Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcap Fund Class has no effect on the direction of Hartford Growth i.e., Hartford Growth and Amcap Fund go up and down completely randomly.
Pair Corralation between Hartford Growth and Amcap Fund
Assuming the 90 days horizon The Hartford Growth is expected to generate 1.48 times more return on investment than Amcap Fund. However, Hartford Growth is 1.48 times more volatile than Amcap Fund Class. It trades about -0.01 of its potential returns per unit of risk. Amcap Fund Class is currently generating about -0.14 per unit of risk. If you would invest 4,852 in The Hartford Growth on February 7, 2024 and sell it today you would lose (20.00) from holding The Hartford Growth or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Hartford Growth vs. Amcap Fund Class
Performance |
| Timeline |
| Hartford Growth |
| Amcap Fund Class |
Hartford Growth and Amcap Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Growth and Amcap Fund
The main advantage of trading using opposite Hartford Growth and Amcap Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Growth position performs unexpectedly, Amcap Fund 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 Amcap Fund will offset losses from the drop in Amcap Fund's long position.| Hartford Growth vs. Hartford Growth Opportunities | Hartford Growth vs. The Hartford Growth | Hartford Growth vs. Hartford Global Impact |
| Amcap Fund vs. Europacific Growth Fund | Amcap Fund vs. Capital World Growth | Amcap Fund vs. American Funds Fundamental | Amcap Fund vs. Washington Mutual Investors |
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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