Correlation Between Hartford Emerging and First Trust
Can any of the company-specific risk be diversified away by investing in both Hartford Emerging and First Trust 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 Emerging and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Emerging Markets and First Trust Managed, you can compare the effects of market volatilities on Hartford Emerging and First Trust 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 Emerging with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Emerging and First Trust.
Diversification Opportunities for Hartford Emerging and First Trust
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and First is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Emerging Markets and First Trust Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Managed and Hartford Emerging 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 Emerging Markets are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Managed has no effect on the direction of Hartford Emerging i.e., Hartford Emerging and First Trust go up and down completely randomly.
Pair Corralation between Hartford Emerging and First Trust
Assuming the 90 days horizon Hartford Emerging Markets is expected to generate 4.53 times more return on investment than First Trust. However, Hartford Emerging is 4.53 times more volatile than First Trust Managed. It trades about 0.3 of its potential returns per unit of risk. First Trust Managed is currently generating about 0.1 per unit of risk. If you would invest 1,007 in Hartford Emerging Markets on April 15, 2025 and sell it today you would earn a total of 150.00 from holding Hartford Emerging Markets or generate 14.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Emerging Markets vs. First Trust Managed
Performance |
| Timeline |
| Hartford Emerging Markets |
| First Trust Managed |
Hartford Emerging and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Emerging and First Trust
The main advantage of trading using opposite Hartford Emerging and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Emerging position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Hartford Emerging vs. Pnc Emerging Markets | Hartford Emerging vs. Extended Market Index | Hartford Emerging vs. Ab Select Longshort | Hartford Emerging vs. Astor Longshort Fund |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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