Correlation Between Axa Equitable and Hartford Financial
Can any of the company-specific risk be diversified away by investing in both Axa Equitable 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 Axa Equitable and Hartford Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axa Equitable Holdings and The Hartford Financial, you can compare the effects of market volatilities on Axa Equitable 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 Axa Equitable with a short position of Hartford Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axa Equitable and Hartford Financial.
Diversification Opportunities for Axa Equitable and Hartford Financial
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axa and Hartford is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Axa Equitable Holdings 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 Axa Equitable 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 Axa 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 The Hartford Financial has no effect on the direction of Axa Equitable i.e., Axa Equitable and Hartford Financial go up and down completely randomly.
Pair Corralation between Axa Equitable and Hartford Financial
Considering the 90-day investment horizon Axa Equitable Holdings is expected to generate 6.92 times more return on investment than Hartford Financial. However, Axa Equitable is 6.92 times more volatile than The Hartford Financial. It trades about 0.08 of its potential returns per unit of risk. The Hartford Financial is currently generating about 0.09 per unit of risk. If you would invest 4,596 in Axa Equitable Holdings on August 31, 2024 and sell it today you would earn a total of 212.00 from holding Axa Equitable Holdings or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axa Equitable Holdings vs. The Hartford Financial
Performance |
| Timeline |
| Axa Equitable Holdings |
| The Hartford Financial |
Axa Equitable and Hartford Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axa Equitable and Hartford Financial
The main advantage of trading using opposite Axa Equitable and Hartford Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axa Equitable 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.| Axa Equitable vs. American International Group | Axa Equitable vs. Hartford Financial Services | Axa Equitable vs. Goosehead Insurance | Axa Equitable vs. Enstar Group Limited |
| Hartford Financial vs. Arch Capital Group | Hartford Financial vs. Athene Holding | Hartford Financial vs. Arch Capital Group | Hartford Financial vs. Athene Holding |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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