Correlation Between Eventide Healthcare and Hartford Healthcare
Can any of the company-specific risk be diversified away by investing in both Eventide Healthcare 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 Eventide Healthcare and Hartford Healthcare 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 Hartford Healthcare Hls, you can compare the effects of market volatilities on Eventide Healthcare 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 Eventide Healthcare with a short position of Hartford Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eventide Healthcare and Hartford Healthcare.
Diversification Opportunities for Eventide Healthcare and Hartford Healthcare
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eventide and Hartford is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Eventide Healthcare Life 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 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 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 Eventide Healthcare i.e., Eventide Healthcare and Hartford Healthcare go up and down completely randomly.
Pair Corralation between Eventide Healthcare and Hartford Healthcare
Assuming the 90 days horizon Eventide Healthcare is expected to generate 1.0 times less return on investment than Hartford Healthcare. In addition to that, Eventide Healthcare is 1.69 times more volatile than Hartford Healthcare Hls. It trades about 0.08 of its total potential returns per unit of risk. Hartford Healthcare Hls is currently generating about 0.14 per unit of volatility. If you would invest 1,622 in Hartford Healthcare Hls on October 20, 2024 and sell it today you would earn a total of 33.00 from holding Hartford Healthcare Hls or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eventide Healthcare Life vs. Hartford Healthcare Hls
Performance |
| Timeline |
| Eventide Healthcare Life |
| Hartford Healthcare Hls |
Eventide Healthcare and Hartford Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eventide Healthcare and Hartford Healthcare
The main advantage of trading using opposite Eventide Healthcare and Hartford Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventide Healthcare 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.| Eventide Healthcare vs. Small Cap Value Fund | Eventide Healthcare vs. Fidelity Small Cap | Eventide Healthcare vs. William Blair Small | Eventide Healthcare vs. Ultramid Cap Profund Ultramid Cap |
| Hartford Healthcare vs. Stone Ridge Diversified | Hartford Healthcare vs. Lord Abbett Diversified | Hartford Healthcare vs. Global Diversified Income | Hartford Healthcare vs. Huber Capital Diversified |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |