Correlation Between The Hartford and L Abbett
Can any of the company-specific risk be diversified away by investing in both The Hartford and L Abbett 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 L Abbett 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 L Abbett Growth, you can compare the effects of market volatilities on The Hartford and L Abbett 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 L Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and L Abbett.
Diversification Opportunities for The Hartford and L Abbett
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between The and LGLSX is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and L Abbett Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Abbett Growth 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 Growth are associated (or correlated) with L Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Abbett Growth has no effect on the direction of The Hartford i.e., The Hartford and L Abbett go up and down completely randomly.
Pair Corralation between The Hartford and L Abbett
Assuming the 90 days horizon The Hartford is expected to generate 2.33 times less return on investment than L Abbett. But when comparing it to its historical volatility, The Hartford Growth is 1.96 times less risky than L Abbett. It trades about 0.32 of its potential returns per unit of risk. L Abbett Growth is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 4,042 in L Abbett Growth on April 23, 2025 and sell it today you would earn a total of 1,146 from holding L Abbett Growth or generate 28.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Growth vs. L Abbett Growth
Performance |
| Timeline |
| Hartford Growth |
| L Abbett Growth |
The Hartford and L Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and L Abbett
The main advantage of trading using opposite The Hartford and L Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, L Abbett 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 L Abbett will offset losses from the drop in L Abbett's long position.| The Hartford vs. Small Pany Growth | The Hartford vs. Gamco International Growth | The Hartford vs. Crafword Dividend Growth | The Hartford vs. Mid Cap Growth |
| L Abbett vs. General Money Market | L Abbett vs. Ubs Money Series | L Abbett vs. Principal Fds Money | L Abbett vs. Aig Government Money |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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