Correlation Between Pace International and Hartford Emerging
Can any of the company-specific risk be diversified away by investing in both Pace International and Hartford Emerging 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 Pace International and Hartford Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace International Emerging and Hartford Emerging Markets, you can compare the effects of market volatilities on Pace International and Hartford Emerging 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 Pace International with a short position of Hartford Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace International and Hartford Emerging.
Diversification Opportunities for Pace International and Hartford Emerging
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Pace and HARTFORD is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Pace International Emerging and Hartford Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Emerging Markets and Pace International 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 Pace International Emerging are associated (or correlated) with Hartford Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Emerging Markets has no effect on the direction of Pace International i.e., Pace International and Hartford Emerging go up and down completely randomly.
Pair Corralation between Pace International and Hartford Emerging
Assuming the 90 days horizon Pace International Emerging is expected to generate 0.95 times more return on investment than Hartford Emerging. However, Pace International Emerging is 1.05 times less risky than Hartford Emerging. It trades about 0.2 of its potential returns per unit of risk. Hartford Emerging Markets is currently generating about 0.16 per unit of risk. If you would invest 1,467 in Pace International Emerging on June 9, 2025 and sell it today you would earn a total of 128.00 from holding Pace International Emerging or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace International Emerging vs. Hartford Emerging Markets
Performance |
| Timeline |
| Pace International |
| Hartford Emerging Markets |
Pace International and Hartford Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace International and Hartford Emerging
The main advantage of trading using opposite Pace International and Hartford Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace International position performs unexpectedly, Hartford Emerging 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 Emerging will offset losses from the drop in Hartford Emerging's long position.| Pace International vs. Pace Smallmedium Value | Pace International vs. Pace International Equity | Pace International vs. Ubs Allocation Fund | Pace International vs. Ubs Allocation Fund |
| Hartford Emerging vs. The Hartford Growth | Hartford Emerging vs. The Hartford Growth | Hartford Emerging vs. The Hartford Growth | Hartford Emerging vs. The Hartford Growth |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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