Correlation Between Third Avenue and Hartford Schroders

Can any of the company-specific risk be diversified away by investing in both Third Avenue and Hartford Schroders 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 Third Avenue and Hartford Schroders into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Third Avenue Small Cap and Hartford Schroders Small, you can compare the effects of market volatilities on Third Avenue and Hartford Schroders 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 Third Avenue with a short position of Hartford Schroders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Third Avenue and Hartford Schroders.

Diversification Opportunities for Third Avenue and Hartford Schroders

0.0

Correlation Coefficient

Third Avenue  Hartford Schroders

Pay attention - limited upside

The 3 months correlation between Third and Hartford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Third Avenue Small Cap and Hartford Schroders Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Schroders Small and Third Avenue 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 Third Avenue Small Cap are associated (or correlated) with Hartford Schroders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Schroders Small has no effect on the direction of Third Avenue i.e., Third Avenue and Hartford Schroders go up and down completely randomly.

Pair Corralation between Third Avenue and Hartford Schroders

If you would invest  2,083  in Third Avenue Small Cap on August 26, 2025 and sell it today you would earn a total of  8.00  from holding Third Avenue Small Cap or generate 0.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Third Avenue Small Cap  vs.  Hartford Schroders Small

Third Avenue Small

Risk-Adjusted Performance

Weakest

Over the last 90 days Third Avenue Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Third Avenue is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Hartford Schroders Small

Risk-Adjusted Performance

Soft

Over the last 90 days Hartford Schroders Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Hartford Schroders is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Third Avenue and Hartford Schroders

The main advantage of trading using opposite Third Avenue and Hartford Schroders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Third Avenue position performs unexpectedly, Hartford Schroders 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 Schroders will offset losses from the drop in Hartford Schroders' long position.

The idea behind Third Avenue Small Cap and Hartford Schroders Small pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.