Correlation Between Hartford Total and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Hartford Total and IShares MSCI 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 Total and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Total Return and iShares MSCI Intl, you can compare the effects of market volatilities on Hartford Total and IShares MSCI 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 Total with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Total and IShares MSCI.
Diversification Opportunities for Hartford Total and IShares MSCI
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hartford and IShares is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Total Return and iShares MSCI Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Intl and Hartford Total 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 Total Return are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI Intl has no effect on the direction of Hartford Total i.e., Hartford Total and IShares MSCI go up and down completely randomly.
Pair Corralation between Hartford Total and IShares MSCI
Given the investment horizon of 90 days Hartford Total Return is expected to generate 0.6 times more return on investment than IShares MSCI. However, Hartford Total Return is 1.66 times less risky than IShares MSCI. It trades about -0.24 of its potential returns per unit of risk. iShares MSCI Intl is currently generating about -0.2 per unit of risk. If you would invest 3,365 in Hartford Total Return on January 26, 2024 and sell it today you would lose (74.00) from holding Hartford Total Return or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Total Return vs. iShares MSCI Intl
Performance |
| Timeline |
| Hartford Total Return |
| iShares MSCI Intl |
Hartford Total and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Total and IShares MSCI
The main advantage of trading using opposite Hartford Total and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Total position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| Hartford Total vs. Fidelity Corporate Bond | Hartford Total vs. Fidelity Limited Term | Hartford Total vs. Fidelity High Yield | Hartford Total vs. Fidelity High Dividend |
| IShares MSCI vs. SPDR MSCI Emerging | IShares MSCI vs. SPDR MSCI USA | IShares MSCI vs. SPDR MSCI World | IShares MSCI vs. SPDR SSGA Large |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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