Correlation Between Eventide Healthcare and The Hartford
Can any of the company-specific risk be diversified away by investing in both Eventide Healthcare and The Hartford 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 Eventide Healthcare and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eventide Healthcare Life and The Hartford Balanced, you can compare the effects of market volatilities on Eventide Healthcare and The Hartford 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 Eventide Healthcare with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eventide Healthcare and The Hartford.
Diversification Opportunities for Eventide Healthcare and The Hartford
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between EVENTIDE and The is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eventide Healthcare Life and The Hartford Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Balanced and Eventide Healthcare 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 Eventide Healthcare Life are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Balanced has no effect on the direction of Eventide Healthcare i.e., Eventide Healthcare and The Hartford go up and down completely randomly.
Pair Corralation between Eventide Healthcare and The Hartford
Assuming the 90 days horizon Eventide Healthcare Life is expected to generate 3.28 times more return on investment than The Hartford. However, Eventide Healthcare is 3.28 times more volatile than The Hartford Balanced. It trades about 0.02 of its potential returns per unit of risk. The Hartford Balanced is currently generating about 0.05 per unit of risk. If you would invest 3,310 in Eventide Healthcare Life on September 3, 2024 and sell it today you would earn a total of 249.00 from holding Eventide Healthcare Life or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eventide Healthcare Life vs. The Hartford Balanced
Performance |
| Timeline |
| Eventide Healthcare Life |
| Hartford Balanced |
Eventide Healthcare and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eventide Healthcare and The Hartford
The main advantage of trading using opposite Eventide Healthcare and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventide Healthcare position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Eventide Healthcare vs. Vanguard Health Care | Eventide Healthcare vs. Vanguard Health Care | Eventide Healthcare vs. T Rowe Price | Eventide Healthcare vs. T Rowe Price |
| The Hartford vs. Eventide Healthcare Life | The Hartford vs. Highland Longshort Healthcare | The Hartford vs. Prudential Health Sciences | The Hartford vs. Blackrock Health Sciences |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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