Correlation Between Hartford Midcap and Harbor Mid

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Can any of the company-specific risk be diversified away by investing in both Hartford Midcap and Harbor 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 Midcap and Harbor Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Midcap and Harbor Mid Cap, you can compare the effects of market volatilities on Hartford Midcap and Harbor 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 Midcap with a short position of Harbor Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Midcap and Harbor Mid.

Diversification Opportunities for Hartford Midcap and Harbor Mid

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Hartford and Harbor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding THE HARTFORD MIDCAP and HARBOR MID CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Mid Cap and Hartford Midcap 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 Midcap are associated (or correlated) with Harbor Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Mid Cap has no effect on the direction of Hartford Midcap i.e., Hartford Midcap and Harbor Mid go up and down completely randomly.

Pair Corralation between Hartford Midcap and Harbor Mid

If you would invest  2,488  in Harbor Mid Cap on December 29, 2023 and sell it today you would earn a total of  181.00  from holding Harbor Mid Cap or generate 7.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

THE HARTFORD MIDCAP  vs.  HARBOR MID CAP

 Performance 
       Timeline  
The Hartford Midcap 

Risk-Adjusted Performance

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

Risk-Adjusted Performance

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Compared to the overall equity markets, risk-adjusted returns on investments in Harbor Mid Cap are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly fragile basic indicators, Harbor Mid may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Hartford Midcap and Harbor Mid Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hartford Midcap and Harbor Mid

The main advantage of trading using opposite Hartford Midcap and Harbor Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Midcap position performs unexpectedly, Harbor 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 Harbor Mid will offset losses from the drop in Harbor Mid's long position.
The idea behind The Hartford Midcap and Harbor 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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