Correlation Between Arrow Managed and The Hartford
Can any of the company-specific risk be diversified away by investing in both Arrow Managed and The Hartford 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 Arrow Managed and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and The Hartford Growth, you can compare the effects of market volatilities on Arrow Managed and The Hartford 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 Arrow Managed with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and The Hartford.
Diversification Opportunities for Arrow Managed and The Hartford
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arrow and The is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth and Arrow Managed 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 Arrow Managed Futures are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Arrow Managed i.e., Arrow Managed and The Hartford go up and down completely randomly.
Pair Corralation between Arrow Managed and The Hartford
Assuming the 90 days horizon Arrow Managed Futures is expected to generate 1.2 times more return on investment than The Hartford. However, Arrow Managed is 1.2 times more volatile than The Hartford Growth. It trades about 0.12 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.09 per unit of risk. If you would invest 518.00 in Arrow Managed Futures on August 31, 2025 and sell it today you would earn a total of 57.00 from holding Arrow Managed Futures or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Managed Futures vs. The Hartford Growth
Performance |
| Timeline |
| Arrow Managed Futures |
| Hartford Growth |
Arrow Managed and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Managed and The Hartford
The main advantage of trading using opposite Arrow Managed and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Arrow Managed vs. United Kingdom Small | Arrow Managed vs. Glg Intl Small | Arrow Managed vs. Lebenthal Lisanti Small | Arrow Managed vs. William Blair Small Mid |
| The Hartford vs. Eip Growth And | The Hartford vs. Qs Growth Fund | The Hartford vs. Auer Growth Fund | The Hartford vs. Growth Allocation Fund |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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