Correlation Between Hartford Multifactor and Formidable ETF
Can any of the company-specific risk be diversified away by investing in both Hartford Multifactor and Formidable ETF 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 Hartford Multifactor and Formidable ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Multifactor Equity and Formidable ETF, you can compare the effects of market volatilities on Hartford Multifactor and Formidable ETF 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 Hartford Multifactor with a short position of Formidable ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Multifactor and Formidable ETF.
Diversification Opportunities for Hartford Multifactor and Formidable ETF
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and Formidable is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Multifactor Equity and Formidable ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formidable ETF and Hartford Multifactor 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 Hartford Multifactor Equity are associated (or correlated) with Formidable ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formidable ETF has no effect on the direction of Hartford Multifactor i.e., Hartford Multifactor and Formidable ETF go up and down completely randomly.
Pair Corralation between Hartford Multifactor and Formidable ETF
Given the investment horizon of 90 days Hartford Multifactor is expected to generate 2.86 times less return on investment than Formidable ETF. But when comparing it to its historical volatility, Hartford Multifactor Equity is 1.97 times less risky than Formidable ETF. It trades about 0.04 of its potential returns per unit of risk. Formidable ETF is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,331 in Formidable ETF on August 28, 2025 and sell it today you would earn a total of 117.00 from holding Formidable ETF or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Multifactor Equity vs. Formidable ETF
Performance |
| Timeline |
| Hartford Multifactor |
| Formidable ETF |
Hartford Multifactor and Formidable ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Multifactor and Formidable ETF
The main advantage of trading using opposite Hartford Multifactor and Formidable ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Multifactor position performs unexpectedly, Formidable ETF 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 Formidable ETF will offset losses from the drop in Formidable ETF's long position.| Hartford Multifactor vs. FT Vest Equity | Hartford Multifactor vs. Northern Lights | Hartford Multifactor vs. Diamond Hill Funds | Hartford Multifactor vs. Dimensional International High |
| Formidable ETF vs. DGA Core Plus | Formidable ETF vs. Draco Evolution AI | Formidable ETF vs. ProShares VIX Mid Term | Formidable ETF vs. ProShares VIX Short Term |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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