Correlation Between Northern Lights and Hartford Multifactor
Can any of the company-specific risk be diversified away by investing in both Northern Lights and Hartford Multifactor 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 Northern Lights and Hartford Multifactor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Lights and Hartford Multifactor Equity, you can compare the effects of market volatilities on Northern Lights and Hartford Multifactor 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 Northern Lights with a short position of Hartford Multifactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Lights and Hartford Multifactor.
Diversification Opportunities for Northern Lights and Hartford Multifactor
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Northern and Hartford is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Northern Lights and Hartford Multifactor Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Multifactor and Northern Lights 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 Northern Lights are associated (or correlated) with Hartford Multifactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Multifactor has no effect on the direction of Northern Lights i.e., Northern Lights and Hartford Multifactor go up and down completely randomly.
Pair Corralation between Northern Lights and Hartford Multifactor
Given the investment horizon of 90 days Northern Lights is expected to generate 23.48 times less return on investment than Hartford Multifactor. But when comparing it to its historical volatility, Northern Lights is 1.02 times less risky than Hartford Multifactor. It trades about 0.0 of its potential returns per unit of risk. Hartford Multifactor Equity is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,608 in Hartford Multifactor Equity on September 9, 2025 and sell it today you would earn a total of 223.00 from holding Hartford Multifactor Equity or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern Lights vs. Hartford Multifactor Equity
Performance |
| Timeline |
| Northern Lights |
| Hartford Multifactor |
Northern Lights and Hartford Multifactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Lights and Hartford Multifactor
The main advantage of trading using opposite Northern Lights and Hartford Multifactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Lights position performs unexpectedly, Hartford Multifactor 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 Hartford Multifactor will offset losses from the drop in Hartford Multifactor's long position.| Northern Lights vs. VanEck Social Sentiment | Northern Lights vs. The Alger ETF | Northern Lights vs. Cabana Target Leading | Northern Lights vs. TrueShares Structured Outcome |
| Hartford Multifactor vs. Invesco SP International | Hartford Multifactor vs. Franklin FTSE Canada | Hartford Multifactor vs. JPMorgan Diversified Return | Hartford Multifactor vs. Harbor ETF Trust |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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