Correlation Between Hartford Financial and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both Hartford Financial and Citizens 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 Hartford Financial and Citizens Financial 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 Citizens Financial Group,, you can compare the effects of market volatilities on Hartford Financial and Citizens 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 Hartford Financial with a short position of Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Financial and Citizens Financial.
Diversification Opportunities for Hartford Financial and Citizens Financial
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hartford and Citizens is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Financial and Citizens Financial Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Financial Group, 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 Citizens Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Financial Group, has no effect on the direction of Hartford Financial i.e., Hartford Financial and Citizens Financial go up and down completely randomly.
Pair Corralation between Hartford Financial and Citizens Financial
If you would invest 26,964 in Citizens Financial Group, on October 25, 2024 and sell it today you would earn a total of 1,106 from holding Citizens Financial Group, or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Financial vs. Citizens Financial Group,
Performance |
| Timeline |
| The Hartford Financial |
| Citizens Financial Group, |
Hartford Financial and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Financial and Citizens Financial
The main advantage of trading using opposite Hartford Financial and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Financial position performs unexpectedly, Citizens 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 Citizens Financial will offset losses from the drop in Citizens Financial's long position.| Hartford Financial vs. Agilent Technologies | Hartford Financial vs. Teladoc Health | Hartford Financial vs. Clover Health Investments, | Hartford Financial vs. Paycom Software |
| Citizens Financial vs. Jefferies Financial Group | Citizens Financial vs. Warner Music Group | Citizens Financial vs. Synchrony Financial | Citizens Financial vs. SVB Financial 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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