Correlation Between The Hartford and Sit International
Can any of the company-specific risk be diversified away by investing in both The Hartford and Sit International 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 Sit International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford International and Sit International Equity, you can compare the effects of market volatilities on The Hartford and Sit International 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 Sit International. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Sit International.
Diversification Opportunities for The Hartford and Sit International
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between The and Sit is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford International and Sit International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit International Equity 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 International are associated (or correlated) with Sit International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit International Equity has no effect on the direction of The Hartford i.e., The Hartford and Sit International go up and down completely randomly.
Pair Corralation between The Hartford and Sit International
Assuming the 90 days horizon The Hartford is expected to generate 1.09 times less return on investment than Sit International. In addition to that, The Hartford is 1.17 times more volatile than Sit International Equity. It trades about 0.09 of its total potential returns per unit of risk. Sit International Equity is currently generating about 0.11 per unit of volatility. If you would invest 1,425 in Sit International Equity on September 12, 2025 and sell it today you would earn a total of 69.00 from holding Sit International Equity or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford International vs. Sit International Equity
Performance |
| Timeline |
| Hartford Interna |
| Sit International Equity |
The Hartford and Sit International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Sit International
The main advantage of trading using opposite The Hartford and Sit International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Sit International 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 Sit International will offset losses from the drop in Sit International's long position.| The Hartford vs. The Hartford International | The Hartford vs. The Hartford International | The Hartford vs. The Hartford International | The Hartford vs. Franklin Small Cap |
| Sit International vs. American Beacon Small | Sit International vs. American Beacon Small | Sit International vs. American Beacon Small | Sit International vs. Wells Fargo Emerging |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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