Correlation Between Barings Us and Hartford Healthcare
Can any of the company-specific risk be diversified away by investing in both Barings Us 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 Barings Us and Hartford Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings High Yield and Hartford Healthcare Hls, you can compare the effects of market volatilities on Barings Us 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 Barings Us with a short position of Hartford Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Us and Hartford Healthcare.
Diversification Opportunities for Barings Us and Hartford Healthcare
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Barings and Hartford is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Barings High Yield 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 Barings Us 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 Barings High Yield 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 Barings Us i.e., Barings Us and Hartford Healthcare go up and down completely randomly.
Pair Corralation between Barings Us and Hartford Healthcare
Assuming the 90 days horizon Barings High Yield is expected to generate 0.21 times more return on investment than Hartford Healthcare. However, Barings High Yield is 4.87 times less risky than Hartford Healthcare. It trades about -0.31 of its potential returns per unit of risk. Hartford Healthcare Hls is currently generating about -0.25 per unit of risk. If you would invest 821.00 in Barings High Yield on October 9, 2024 and sell it today you would lose (8.00) from holding Barings High Yield or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings High Yield vs. Hartford Healthcare Hls
Performance |
| Timeline |
| Barings High Yield |
| Hartford Healthcare Hls |
Barings Us and Hartford Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Us and Hartford Healthcare
The main advantage of trading using opposite Barings Us and Hartford Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Us 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.| Barings Us vs. Barings Active Short | Barings Us vs. Barings Emerging Markets | Barings Us vs. Barings Emerging Markets | Barings Us vs. Barings Active Short |
| Hartford Healthcare vs. Mainstay Vertible Fund | Hartford Healthcare vs. Virtus Convertible | Hartford Healthcare vs. Lord Abbett Vertible | Hartford Healthcare vs. Fidelity Vertible Securities |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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