Correlation Between Hartford Healthcare and J Hancock
Can any of the company-specific risk be diversified away by investing in both Hartford Healthcare and J Hancock 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 Healthcare and J Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Healthcare Hls and J Hancock Ii, you can compare the effects of market volatilities on Hartford Healthcare and J Hancock 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 Healthcare with a short position of J Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Healthcare and J Hancock.
Diversification Opportunities for Hartford Healthcare and J Hancock
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hartford and JROUX is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Healthcare Hls and J Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Hancock Ii and Hartford 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 Hartford Healthcare Hls are associated (or correlated) with J Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Hancock Ii has no effect on the direction of Hartford Healthcare i.e., Hartford Healthcare and J Hancock go up and down completely randomly.
Pair Corralation between Hartford Healthcare and J Hancock
Assuming the 90 days horizon Hartford Healthcare Hls is expected to under-perform the J Hancock. In addition to that, Hartford Healthcare is 1.22 times more volatile than J Hancock Ii. It trades about -0.04 of its total potential returns per unit of risk. J Hancock Ii is currently generating about -0.02 per unit of volatility. If you would invest 1,426 in J Hancock Ii on November 7, 2024 and sell it today you would lose (14.00) from holding J Hancock Ii or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Healthcare Hls vs. J Hancock Ii
Performance |
| Timeline |
| Hartford Healthcare Hls |
| J Hancock Ii |
Hartford Healthcare and J Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Healthcare and J Hancock
The main advantage of trading using opposite Hartford Healthcare and J Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Healthcare position performs unexpectedly, J Hancock 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 J Hancock will offset losses from the drop in J Hancock's long position.| Hartford Healthcare vs. Virtus High Yield | Hartford Healthcare vs. Siit High Yield | Hartford Healthcare vs. Lord Abbett Short | Hartford Healthcare vs. Gmo High Yield |
| J Hancock vs. Franklin Gold Precious | J Hancock vs. Global Gold Fund | J Hancock vs. Oppenheimer Gold Special | J Hancock vs. Gabelli Gold Fund |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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