Correlation Between The Hartford and Hartford Healthcare
Can any of the company-specific risk be diversified away by investing in both The Hartford 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 The Hartford and Hartford Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Healthcare and Hartford Healthcare Hls, you can compare the effects of market volatilities on The Hartford 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 The Hartford with a short position of Hartford Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Hartford Healthcare.
Diversification Opportunities for The Hartford and Hartford Healthcare
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between The and Hartford is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare 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 The Hartford 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 Healthcare 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 The Hartford i.e., The Hartford and Hartford Healthcare go up and down completely randomly.
Pair Corralation between The Hartford and Hartford Healthcare
Assuming the 90 days horizon The Hartford Healthcare is expected to under-perform the Hartford Healthcare. But the mutual fund apears to be less risky and, when comparing its historical volatility, The Hartford Healthcare is 1.01 times less risky than Hartford Healthcare. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Hartford Healthcare Hls is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,567 in Hartford Healthcare Hls on August 29, 2024 and sell it today you would lose (43.00) from holding Hartford Healthcare Hls or give up 2.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Healthcare vs. Hartford Healthcare Hls
Performance |
| Timeline |
| The Hartford Healthcare |
| Hartford Healthcare Hls |
The Hartford and Hartford Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Hartford Healthcare
The main advantage of trading using opposite The Hartford and Hartford Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford 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.| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
| Hartford Healthcare vs. The Hartford Growth | Hartford Healthcare vs. The Hartford Growth | Hartford Healthcare vs. The Hartford Growth | Hartford Healthcare vs. The Hartford Growth |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |