Correlation Between Hartford Financial and Apple
Can any of the company-specific risk be diversified away by investing in both Hartford Financial and Apple 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 Hartford Financial and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Financial and Apple Inc, you can compare the effects of market volatilities on Hartford Financial and Apple 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 Hartford Financial with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Financial and Apple.
Diversification Opportunities for Hartford Financial and Apple
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and Apple is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Financial and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Hartford Financial 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 The Hartford Financial are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Hartford Financial i.e., Hartford Financial and Apple go up and down completely randomly.
Pair Corralation between Hartford Financial and Apple
If you would invest 51,980 in The Hartford Financial on November 5, 2024 and sell it today you would earn a total of 0.00 from holding The Hartford Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Financial vs. Apple Inc
Performance |
| Timeline |
| The Hartford Financial |
| Apple Inc |
Hartford Financial and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Financial and Apple
The main advantage of trading using opposite Hartford Financial and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Financial position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Hartford Financial vs. Taiwan Semiconductor Manufacturing | Hartford Financial vs. Apple Inc | Hartford Financial vs. Alibaba Group Holding | Hartford Financial vs. Microsoft |
| Apple vs. Zoom Video Communications | Apple vs. Beyond Meat | Apple vs. CVS Health | Apple vs. TAL Education 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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