Correlation Between The Hartford and Oakmark International
Can any of the company-specific risk be diversified away by investing in both The Hartford and Oakmark International 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 The Hartford and Oakmark International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Equity and Oakmark International Fund, you can compare the effects of market volatilities on The Hartford and Oakmark International 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 The Hartford with a short position of Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Oakmark International.
Diversification Opportunities for The Hartford and Oakmark International
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between The and Oakmark is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Equity and Oakmark International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International and The Hartford 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 Equity are associated (or correlated) with Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of The Hartford i.e., The Hartford and Oakmark International go up and down completely randomly.
Pair Corralation between The Hartford and Oakmark International
Assuming the 90 days horizon The Hartford is expected to generate 1.06 times less return on investment than Oakmark International. But when comparing it to its historical volatility, The Hartford Equity is 1.31 times less risky than Oakmark International. It trades about 0.05 of its potential returns per unit of risk. Oakmark International Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,231 in Oakmark International Fund on September 9, 2024 and sell it today you would earn a total of 403.00 from holding Oakmark International Fund or generate 18.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
The Hartford Equity vs. Oakmark International Fund
Performance |
Timeline |
Hartford Equity |
Oakmark International |
The Hartford and Oakmark International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with The Hartford and Oakmark International
The main advantage of trading using opposite The Hartford and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Oakmark International 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 Oakmark International will offset losses from the drop in Oakmark International's long position.The Hartford vs. The Hartford Dividend | The Hartford vs. The Hartford Total | The Hartford vs. The Hartford International | The Hartford vs. The Hartford Midcap |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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