Correlation Between Assicurazioni Generali and Hartford Financial
Can any of the company-specific risk be diversified away by investing in both Assicurazioni Generali and Hartford Financial 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 Assicurazioni Generali and Hartford Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assicurazioni Generali SpA and The Hartford Financial, you can compare the effects of market volatilities on Assicurazioni Generali and Hartford Financial 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 Assicurazioni Generali with a short position of Hartford Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and Hartford Financial.
Diversification Opportunities for Assicurazioni Generali and Hartford Financial
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Assicurazioni and Hartford is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and The Hartford Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Financial and Assicurazioni Generali 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 Assicurazioni Generali SpA are associated (or correlated) with Hartford Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Financial has no effect on the direction of Assicurazioni Generali i.e., Assicurazioni Generali and Hartford Financial go up and down completely randomly.
Pair Corralation between Assicurazioni Generali and Hartford Financial
Assuming the 90 days horizon Assicurazioni Generali is expected to generate 2.01 times less return on investment than Hartford Financial. But when comparing it to its historical volatility, Assicurazioni Generali SpA is 1.02 times less risky than Hartford Financial. It trades about 0.18 of its potential returns per unit of risk. The Hartford Financial is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 10,200 in The Hartford Financial on September 1, 2024 and sell it today you would earn a total of 1,500 from holding The Hartford Financial or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Assicurazioni Generali SpA vs. The Hartford Financial
Performance |
| Timeline |
| Assicurazioni Generali |
| The Hartford Financial |
Assicurazioni Generali and Hartford Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assicurazioni Generali and Hartford Financial
The main advantage of trading using opposite Assicurazioni Generali and Hartford Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali position performs unexpectedly, Hartford Financial 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 Financial will offset losses from the drop in Hartford Financial's long position.| Assicurazioni Generali vs. T MOBILE US | Assicurazioni Generali vs. Carsales | Assicurazioni Generali vs. Ribbon Communications | Assicurazioni Generali vs. Verizon Communications |
| Hartford Financial vs. SCIENCE IN SPORT | Hartford Financial vs. Cleanaway Waste Management | Hartford Financial vs. TITANIUM TRANSPORTGROUP | Hartford Financial vs. International Consolidated Airlines |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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