Correlation Between Hartford Healthcare and Columbia Seligman
Can any of the company-specific risk be diversified away by investing in both Hartford Healthcare and Columbia Seligman 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 Columbia Seligman 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 Columbia Seligman Global, you can compare the effects of market volatilities on Hartford Healthcare and Columbia Seligman 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 Columbia Seligman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Healthcare and Columbia Seligman.
Diversification Opportunities for Hartford Healthcare and Columbia Seligman
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hartford and Columbia is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Healthcare Hls and Columbia Seligman Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Seligman Global 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 Columbia Seligman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Seligman Global has no effect on the direction of Hartford Healthcare i.e., Hartford Healthcare and Columbia Seligman go up and down completely randomly.
Pair Corralation between Hartford Healthcare and Columbia Seligman
Assuming the 90 days horizon Hartford Healthcare Hls is expected to generate 0.3 times more return on investment than Columbia Seligman. However, Hartford Healthcare Hls is 3.29 times less risky than Columbia Seligman. It trades about -0.12 of its potential returns per unit of risk. Columbia Seligman Global is currently generating about -0.1 per unit of risk. If you would invest 1,747 in Hartford Healthcare Hls on September 14, 2024 and sell it today you would lose (43.00) from holding Hartford Healthcare Hls or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Healthcare Hls vs. Columbia Seligman Global
Performance |
| Timeline |
| Hartford Healthcare Hls |
| Columbia Seligman Global |
Hartford Healthcare and Columbia Seligman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Healthcare and Columbia Seligman
The main advantage of trading using opposite Hartford Healthcare and Columbia Seligman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Healthcare position performs unexpectedly, Columbia Seligman 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 Columbia Seligman will offset losses from the drop in Columbia Seligman's long position.| Hartford Healthcare vs. Elfun Government Money | Hartford Healthcare vs. Dws Government Money | Hartford Healthcare vs. Ridgeworth Seix Government | Hartford Healthcare vs. Lord Abbett Government |
| Columbia Seligman vs. Columbia Seligman Munications | Columbia Seligman vs. Columbia Seligman Munications | Columbia Seligman vs. Columbia Seligman Global | Columbia Seligman vs. Columbia Seligman Munications |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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