Correlation Between Aqr Large and Hartford Healthcare
Can any of the company-specific risk be diversified away by investing in both Aqr Large and Hartford Healthcare 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 Aqr Large and Hartford Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Large Cap and Hartford Healthcare Hls, you can compare the effects of market volatilities on Aqr Large and Hartford Healthcare 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 Aqr Large with a short position of Hartford Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Hartford Healthcare.
Diversification Opportunities for Aqr Large and Hartford Healthcare
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aqr and Hartford is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and Hartford Healthcare Hls in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Healthcare Hls and Aqr Large 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 Aqr Large Cap are associated (or correlated) with Hartford Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Healthcare Hls has no effect on the direction of Aqr Large i.e., Aqr Large and Hartford Healthcare go up and down completely randomly.
Pair Corralation between Aqr Large and Hartford Healthcare
Assuming the 90 days horizon Aqr Large Cap is expected to generate 1.07 times more return on investment than Hartford Healthcare. However, Aqr Large is 1.07 times more volatile than Hartford Healthcare Hls. It trades about 0.23 of its potential returns per unit of risk. Hartford Healthcare Hls is currently generating about -0.22 per unit of risk. If you would invest 2,441 in Aqr Large Cap on August 28, 2024 and sell it today you would earn a total of 128.00 from holding Aqr Large Cap or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aqr Large Cap vs. Hartford Healthcare Hls
Performance |
| Timeline |
| Aqr Large Cap |
| Hartford Healthcare Hls |
Aqr Large and Hartford Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Hartford Healthcare
The main advantage of trading using opposite Aqr Large and Hartford Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large position performs unexpectedly, Hartford Healthcare 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 Healthcare will offset losses from the drop in Hartford Healthcare's long position.| Aqr Large vs. Hartford Healthcare Hls | Aqr Large vs. Prudential Health Sciences | Aqr Large vs. Baron Health Care | Aqr Large vs. The Gabelli Healthcare |
| Hartford Healthcare vs. The Hartford Growth | Hartford Healthcare vs. The Hartford Growth | Hartford Healthcare vs. The Hartford Growth | Hartford Healthcare 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 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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