Correlation Between Hartford Growth and Blackrock Muniholdings

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

Diversification Opportunities for Hartford Growth and Blackrock Muniholdings

-0.44

Correlation Coefficient

Hartford Growth  Blackrock Muniholdings

Very good diversification

The 3 months correlation between Hartford and Blackrock is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Blackrock Muniholdings Ny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniholdings 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 Blackrock Muniholdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniholdings has no effect on the direction of Hartford Growth i.e., Hartford Growth and Blackrock Muniholdings go up and down completely randomly.

Pair Corralation between Hartford Growth and Blackrock Muniholdings

Assuming the 90 days horizon The Hartford Growth is expected to generate 1.82 times more return on investment than Blackrock Muniholdings. However, Hartford Growth is 1.82 times more volatile than Blackrock Muniholdings Ny. It trades about 0.18 of its potential returns per unit of risk. Blackrock Muniholdings Ny is currently generating about -0.16 per unit of risk. If you would invest  5,333  in The Hartford Growth on September 28, 2024 and sell it today you would earn a total of  708.00  from holding The Hartford Growth or generate 13.28% return on investment over 90 days.

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

The Hartford Growth  vs.  Blackrock Muniholdings Ny

Hartford Growth

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Growth are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Hartford Growth showed solid returns over the last few months and may actually be approaching a breakup point.

Blackrock Muniholdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackrock Muniholdings Ny has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest inconsistent performance, the Fund's technical indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the fund investors.

Pair Trading with Hartford Growth and Blackrock Muniholdings

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

The idea behind The Hartford Growth and Blackrock Muniholdings Ny 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.