Correlation Between The Hartford and Brandes International
Can any of the company-specific risk be diversified away by investing in both The Hartford and Brandes International 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 Brandes International 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 Brandes International Equity, you can compare the effects of market volatilities on The Hartford and Brandes International 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 Brandes International. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Brandes International.
Diversification Opportunities for The Hartford and Brandes International
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between The and Brandes is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare and Brandes International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes International 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 Brandes International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes International has no effect on the direction of The Hartford i.e., The Hartford and Brandes International go up and down completely randomly.
Pair Corralation between The Hartford and Brandes International
Assuming the 90 days horizon The Hartford Healthcare is expected to generate 1.16 times more return on investment than Brandes International. However, The Hartford is 1.16 times more volatile than Brandes International Equity. It trades about 0.14 of its potential returns per unit of risk. Brandes International Equity is currently generating about 0.1 per unit of risk. If you would invest 4,365 in The Hartford Healthcare on October 24, 2024 and sell it today you would earn a total of 97.00 from holding The Hartford Healthcare or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Healthcare vs. Brandes International Equity
Performance |
| Timeline |
| The Hartford Healthcare |
| Brandes International |
The Hartford and Brandes International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Brandes International
The main advantage of trading using opposite The Hartford and Brandes International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Brandes International 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 Brandes International will offset losses from the drop in Brandes International'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 |
| Brandes International vs. Rbc Global Equity | Brandes International vs. Alliancebernstein Global Highome | Brandes International vs. Rbb Fund | Brandes International vs. Legg Mason Global |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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