Correlation Between Hartford Growth and Profunds Large

Can any of the company-specific risk be diversified away by investing in both Hartford Growth and Profunds Large 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 Profunds Large 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 Profunds Large Cap Growth, you can compare the effects of market volatilities on Hartford Growth and Profunds Large 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 Profunds Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Profunds Large.

Diversification Opportunities for Hartford Growth and Profunds Large

1.0

Correlation Coefficient

Hartford Growth  Profunds Large

No risk reduction

The 3 months correlation between Hartford and Profunds is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Profunds Large Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profunds Large Cap 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 Profunds Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profunds Large Cap has no effect on the direction of Hartford Growth i.e., Hartford Growth and Profunds Large go up and down completely randomly.

Pair Corralation between Hartford Growth and Profunds Large

Assuming the 90 days horizon The Hartford Growth is expected to generate 1.07 times more return on investment than Profunds Large. However, Hartford Growth is 1.07 times more volatile than Profunds Large Cap Growth. It trades about 0.27 of its potential returns per unit of risk. Profunds Large Cap Growth is currently generating about 0.28 per unit of risk. If you would invest  5,394  in The Hartford Growth on May 5, 2025 and sell it today you would earn a total of  931.00  from holding The Hartford Growth or generate 17.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

The Hartford Growth  vs.  Profunds Large Cap Growth

Hartford Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Growth are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Hartford Growth showed solid returns over the last few months and may actually be approaching a breakup point.

Profunds Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Profunds Large Cap Growth are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Profunds Large showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hartford Growth and Profunds Large

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

The idea behind The Hartford Growth and Profunds Large Cap Growth 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.