Correlation Between Hartford Emerging and Gmo Emerging
Can any of the company-specific risk be diversified away by investing in both Hartford Emerging and Gmo Emerging 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 Gmo Emerging 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 Gmo Emerging Markets, you can compare the effects of market volatilities on Hartford Emerging and Gmo Emerging 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 Gmo Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Emerging and Gmo Emerging.
Diversification Opportunities for Hartford Emerging and Gmo Emerging
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hartford and Gmo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Emerging Markets and Gmo Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Emerging Markets 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 Gmo Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Emerging Markets has no effect on the direction of Hartford Emerging i.e., Hartford Emerging and Gmo Emerging go up and down completely randomly.
Pair Corralation between Hartford Emerging and Gmo Emerging
Assuming the 90 days horizon Hartford Emerging Markets is expected to generate 0.97 times more return on investment than Gmo Emerging. However, Hartford Emerging Markets is 1.03 times less risky than Gmo Emerging. It trades about 0.22 of its potential returns per unit of risk. Gmo Emerging Markets is currently generating about 0.14 per unit of risk. If you would invest 1,092 in Hartford Emerging Markets on May 31, 2025 and sell it today you would earn a total of 113.00 from holding Hartford Emerging Markets or generate 10.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Hartford Emerging Markets vs. Gmo Emerging Markets
Performance |
| Timeline |
| Hartford Emerging Markets |
| Gmo Emerging Markets |
Hartford Emerging and Gmo Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Emerging and Gmo Emerging
The main advantage of trading using opposite Hartford Emerging and Gmo Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Emerging position performs unexpectedly, Gmo Emerging 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 Gmo Emerging will offset losses from the drop in Gmo Emerging's long position.| Hartford Emerging vs. Jpmorgan High Yield | Hartford Emerging vs. Lord Abbett Short | Hartford Emerging vs. Transamerica High Yield | Hartford Emerging vs. Msift High Yield |
| Gmo Emerging vs. Cornerstone Moderately Aggressive | Gmo Emerging vs. Putnam Retirement Advantage | Gmo Emerging vs. Columbia Moderate Growth | Gmo Emerging vs. Sa Worldwide Moderate |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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