Correlation Between Hartford Healthcare and Global Alpha
Can any of the company-specific risk be diversified away by investing in both Hartford Healthcare and Global Alpha 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 Global Alpha 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 The Global Alpha, you can compare the effects of market volatilities on Hartford Healthcare and Global Alpha 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 Global Alpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Healthcare and Global Alpha.
Diversification Opportunities for Hartford Healthcare and Global Alpha
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between HARTFORD and Global is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Healthcare Hls and The Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Alpha 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 Global Alpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Alpha has no effect on the direction of Hartford Healthcare i.e., Hartford Healthcare and Global Alpha go up and down completely randomly.
Pair Corralation between Hartford Healthcare and Global Alpha
Assuming the 90 days horizon Hartford Healthcare Hls is expected to generate 0.42 times more return on investment than Global Alpha. However, Hartford Healthcare Hls is 2.38 times less risky than Global Alpha. It trades about -0.1 of its potential returns per unit of risk. The Global Alpha is currently generating about -0.12 per unit of risk. If you would invest 1,705 in Hartford Healthcare Hls on October 23, 2024 and sell it today you would lose (50.00) from holding Hartford Healthcare Hls or give up 2.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Healthcare Hls vs. The Global Alpha
Performance |
| Timeline |
| Hartford Healthcare Hls |
| Global Alpha |
Hartford Healthcare and Global Alpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Healthcare and Global Alpha
The main advantage of trading using opposite Hartford Healthcare and Global Alpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Healthcare position performs unexpectedly, Global Alpha 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 Global Alpha will offset losses from the drop in Global Alpha's long position.| Hartford Healthcare vs. Deutsche Real Estate | Hartford Healthcare vs. Jhancock Real Estate | Hartford Healthcare vs. Forum Real Estate | Hartford Healthcare vs. American Century Real |
| Global Alpha vs. Alphacentric Lifesci Healthcare | Global Alpha vs. Blackrock Health Sciences | Global Alpha vs. Hartford Healthcare Hls | Global Alpha vs. Eventide Healthcare Life |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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