Correlation Between Hartford Growth and Dunham Small
Can any of the company-specific risk be diversified away by investing in both Hartford Growth and Dunham Small 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 Dunham Small 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 Dunham Small Cap, you can compare the effects of market volatilities on Hartford Growth and Dunham Small 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 Dunham Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Growth and Dunham Small.
Diversification Opportunities for Hartford Growth and Dunham Small
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hartford and Dunham is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and Dunham Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Small Cap 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 Dunham Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Small Cap has no effect on the direction of Hartford Growth i.e., Hartford Growth and Dunham Small go up and down completely randomly.
Pair Corralation between Hartford Growth and Dunham Small
Assuming the 90 days horizon Hartford Growth is expected to generate 1.05 times less return on investment than Dunham Small. But when comparing it to its historical volatility, The Hartford Growth is 1.19 times less risky than Dunham Small. It trades about 0.18 of its potential returns per unit of risk. Dunham Small Cap is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,418 in Dunham Small Cap on June 9, 2025 and sell it today you would earn a total of 158.00 from holding Dunham Small Cap or generate 11.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Growth vs. Dunham Small Cap
Performance |
| Timeline |
| Hartford Growth |
| Dunham Small Cap |
Hartford Growth and Dunham Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Growth and Dunham Small
The main advantage of trading using opposite Hartford Growth and Dunham Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Growth position performs unexpectedly, Dunham Small 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 Dunham Small will offset losses from the drop in Dunham Small's long position.| Hartford Growth vs. Franklin Adjustable Government | Hartford Growth vs. Rbc Short Duration | Hartford Growth vs. Pace Municipal Fixed | Hartford Growth vs. Ambrus Core Bond |
| Dunham Small vs. Putnam Convertible Securities | Dunham Small vs. Rationalpier 88 Convertible | Dunham Small vs. Lord Abbett Convertible | Dunham Small vs. Virtus Convertible |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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