Correlation Between The Hartford and College Retirement
Can any of the company-specific risk be diversified away by investing in both The Hartford and College Retirement 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 College Retirement 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 College Retirement Equities, you can compare the effects of market volatilities on The Hartford and College Retirement 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 College Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and College Retirement.
Diversification Opportunities for The Hartford and College Retirement
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between The and College is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare and College Retirement Equities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on College Retirement 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 College Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of College Retirement has no effect on the direction of The Hartford i.e., The Hartford and College Retirement go up and down completely randomly.
Pair Corralation between The Hartford and College Retirement
Assuming the 90 days horizon The Hartford is expected to generate 6.72 times less return on investment than College Retirement. In addition to that, The Hartford is 1.01 times more volatile than College Retirement Equities. It trades about 0.01 of its total potential returns per unit of risk. College Retirement Equities is currently generating about 0.09 per unit of volatility. If you would invest 24,838 in College Retirement Equities on October 18, 2024 and sell it today you would earn a total of 9,452 from holding College Retirement Equities or generate 38.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Healthcare vs. College Retirement Equities
Performance |
| Timeline |
| The Hartford Healthcare |
| College Retirement |
The Hartford and College Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and College Retirement
The main advantage of trading using opposite The Hartford and College Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, College Retirement 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 College Retirement will offset losses from the drop in College Retirement'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 |
| College Retirement vs. Invesco Global Health | College Retirement vs. The Hartford Healthcare | College Retirement vs. Eventide Healthcare Life | College Retirement 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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