Correlation Between The Hartford and Aam/himco Short
Can any of the company-specific risk be diversified away by investing in both The Hartford and Aam/himco Short 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 Aam/himco Short 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 Aamhimco Short Duration, you can compare the effects of market volatilities on The Hartford and Aam/himco Short 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 Aam/himco Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Aam/himco Short.
Diversification Opportunities for The Hartford and Aam/himco Short
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between The and Aam/himco is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare and Aamhimco Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aamhimco Short Duration 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 Aam/himco Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aamhimco Short Duration has no effect on the direction of The Hartford i.e., The Hartford and Aam/himco Short go up and down completely randomly.
Pair Corralation between The Hartford and Aam/himco Short
Assuming the 90 days horizon The Hartford Healthcare is expected to under-perform the Aam/himco Short. In addition to that, The Hartford is 11.1 times more volatile than Aamhimco Short Duration. It trades about -0.25 of its total potential returns per unit of risk. Aamhimco Short Duration is currently generating about -0.16 per unit of volatility. If you would invest 1,004 in Aamhimco Short Duration on October 11, 2024 and sell it today you would lose (4.00) from holding Aamhimco Short Duration or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Healthcare vs. Aamhimco Short Duration
Performance |
| Timeline |
| The Hartford Healthcare |
| Aamhimco Short Duration |
The Hartford and Aam/himco Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Aam/himco Short
The main advantage of trading using opposite The Hartford and Aam/himco Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Aam/himco Short 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 Aam/himco Short will offset losses from the drop in Aam/himco Short's long position.| The Hartford vs. The Hartford Healthcare | The Hartford vs. Hartford Healthcare Hls | The Hartford vs. The Hartford Global | The Hartford vs. Hartford Healthcare Hls |
| Aam/himco Short vs. Prudential Health Sciences | Aam/himco Short vs. The Hartford Healthcare | Aam/himco Short vs. Baron Health Care | Aam/himco Short vs. Hartford Healthcare Hls |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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