Correlation Between Apple and The Hartford
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and The Hartford Total, you can compare the effects of market volatilities on Apple 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 Apple with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and The Hartford.
Diversification Opportunities for Apple and The Hartford
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apple and The is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and The Hartford Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Total and Apple 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 Apple Inc 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 Total has no effect on the direction of Apple i.e., Apple and The Hartford go up and down completely randomly.
Pair Corralation between Apple and The Hartford
Given the investment horizon of 90 days Apple Inc is expected to under-perform the The Hartford. In addition to that, Apple is 5.26 times more volatile than The Hartford Total. It trades about -0.38 of its total potential returns per unit of risk. The Hartford Total is currently generating about 0.07 per unit of volatility. If you would invest 882.00 in The Hartford Total on October 22, 2024 and sell it today you would earn a total of 3.00 from holding The Hartford Total or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Apple Inc vs. The Hartford Total
Performance |
| Timeline |
| Apple Inc |
| Hartford Total |
Apple and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and The Hartford
The main advantage of trading using opposite Apple and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.The idea behind Apple Inc and The Hartford Total 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.| The Hartford vs. Rbc Global Equity | The Hartford vs. Us Global Investors | The Hartford vs. Rbc Bluebay Global | The Hartford vs. Vanguard Global Credit |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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