Correlation Between Calculus VCT and Hartford Financial
Can any of the company-specific risk be diversified away by investing in both Calculus VCT 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 Calculus VCT and Hartford Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calculus VCT plc and Hartford Financial Services, you can compare the effects of market volatilities on Calculus VCT 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 Calculus VCT with a short position of Hartford Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calculus VCT and Hartford Financial.
Diversification Opportunities for Calculus VCT and Hartford Financial
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calculus and Hartford is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Calculus VCT plc and Hartford Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Financial and Calculus VCT 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 Calculus VCT plc 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 Hartford Financial has no effect on the direction of Calculus VCT i.e., Calculus VCT and Hartford Financial go up and down completely randomly.
Pair Corralation between Calculus VCT and Hartford Financial
Assuming the 90 days trading horizon Calculus VCT plc is expected to under-perform the Hartford Financial. In addition to that, Calculus VCT is 2.58 times more volatile than Hartford Financial Services. It trades about -0.24 of its total potential returns per unit of risk. Hartford Financial Services is currently generating about -0.27 per unit of volatility. If you would invest 11,621 in Hartford Financial Services on October 9, 2024 and sell it today you would lose (663.00) from holding Hartford Financial Services or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Calculus VCT plc vs. Hartford Financial Services
Performance |
| Timeline |
| Calculus VCT plc |
| Hartford Financial |
Calculus VCT and Hartford Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calculus VCT and Hartford Financial
The main advantage of trading using opposite Calculus VCT and Hartford Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calculus VCT 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.| Calculus VCT vs. Sparebank 1 SR | Calculus VCT vs. Micron Technology | Calculus VCT vs. Sabien Technology Group | Calculus VCT vs. Axway Software SA |
| Hartford Financial vs. Walmart | Hartford Financial vs. BYD Co | Hartford Financial vs. Volkswagen AG | Hartford Financial vs. Volkswagen AG Non Vtg |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |