Correlation Between Hartford Mid and American Beacon
Can any of the company-specific risk be diversified away by investing in both Hartford Mid and American Beacon 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 Mid and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Mid Cap and American Beacon Mid Cap, you can compare the effects of market volatilities on Hartford Mid and American Beacon 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 Mid with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Mid and American Beacon.
Diversification Opportunities for Hartford Mid and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hartford and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Mid Cap and American Beacon Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Mid and Hartford Mid 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 Mid Cap are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Mid has no effect on the direction of Hartford Mid i.e., Hartford Mid and American Beacon go up and down completely randomly.
Pair Corralation between Hartford Mid and American Beacon
If you would invest 1,425 in Hartford Mid Cap on January 25, 2024 and sell it today you would earn a total of 192.00 from holding Hartford Mid Cap or generate 13.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hartford Mid Cap vs. American Beacon Mid Cap
Performance |
| Timeline |
| Hartford Mid Cap |
| American Beacon Mid |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hartford Mid and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Mid and American Beacon
The main advantage of trading using opposite Hartford Mid and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Mid position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Hartford Mid vs. The Hartford Growth | Hartford Mid vs. The Hartford Growth | Hartford Mid vs. The Hartford Growth | Hartford Mid vs. The Hartford Growth |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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