Correlation Between Equitable Holdings and Hartford Financial
Can any of the company-specific risk be diversified away by investing in both Equitable Holdings 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 Equitable Holdings and Hartford Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equitable Holdings and Hartford Financial Services, you can compare the effects of market volatilities on Equitable Holdings 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 Equitable Holdings with a short position of Hartford Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equitable Holdings and Hartford Financial.
Diversification Opportunities for Equitable Holdings and Hartford Financial
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Equitable and Hartford is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Equitable Holdings and Hartford Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Financial and Equitable Holdings 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 Equitable Holdings 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 Equitable Holdings i.e., Equitable Holdings and Hartford Financial go up and down completely randomly.
Pair Corralation between Equitable Holdings and Hartford Financial
Assuming the 90 days trading horizon Equitable Holdings is expected to generate 3.17 times less return on investment than Hartford Financial. But when comparing it to its historical volatility, Equitable Holdings is 1.09 times less risky than Hartford Financial. It trades about 0.03 of its potential returns per unit of risk. Hartford Financial Services is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,195 in Hartford Financial Services on August 24, 2024 and sell it today you would earn a total of 4,877 from holding Hartford Financial Services or generate 67.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equitable Holdings vs. Hartford Financial Services
Performance |
| Timeline |
| Equitable Holdings |
| Hartford Financial |
Equitable Holdings and Hartford Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equitable Holdings and Hartford Financial
The main advantage of trading using opposite Equitable Holdings and Hartford Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equitable Holdings 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.| Equitable Holdings vs. Enstar Group Limited | Equitable Holdings vs. Berkshire Hathaway | Equitable Holdings vs. Athene Holding | Equitable Holdings vs. Athene Holding |
| Hartford Financial vs. Goosehead Insurance | Hartford Financial vs. International General Insurance | Hartford Financial vs. Enstar Group Limited | Hartford Financial vs. Arch Capital Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |