Correlation Between Hartford Healthcare and Dunham Dynamic
Can any of the company-specific risk be diversified away by investing in both Hartford Healthcare and Dunham Dynamic 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 Dunham Dynamic 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 Dunham Dynamic Macro, you can compare the effects of market volatilities on Hartford Healthcare and Dunham Dynamic 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 Dunham Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Healthcare and Dunham Dynamic.
Diversification Opportunities for Hartford Healthcare and Dunham Dynamic
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HARTFORD and DUNHAM is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Healthcare Hls and Dunham Dynamic Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Dynamic Macro 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 Dunham Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Dynamic Macro has no effect on the direction of Hartford Healthcare i.e., Hartford Healthcare and Dunham Dynamic go up and down completely randomly.
Pair Corralation between Hartford Healthcare and Dunham Dynamic
Assuming the 90 days horizon Hartford Healthcare Hls is expected to generate 1.25 times more return on investment than Dunham Dynamic. However, Hartford Healthcare is 1.25 times more volatile than Dunham Dynamic Macro. It trades about 0.15 of its potential returns per unit of risk. Dunham Dynamic Macro is currently generating about -0.18 per unit of risk. If you would invest 1,652 in Hartford Healthcare Hls on October 24, 2024 and sell it today you would earn a total of 37.00 from holding Hartford Healthcare Hls or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Healthcare Hls vs. Dunham Dynamic Macro
Performance |
| Timeline |
| Hartford Healthcare Hls |
| Dunham Dynamic Macro |
Hartford Healthcare and Dunham Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Healthcare and Dunham Dynamic
The main advantage of trading using opposite Hartford Healthcare and Dunham Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Healthcare position performs unexpectedly, Dunham Dynamic 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 Dunham Dynamic will offset losses from the drop in Dunham Dynamic's long position.| Hartford Healthcare vs. Transamerica Large Cap | Hartford Healthcare vs. Tax Managed Large Cap | Hartford Healthcare vs. Avantis Large Cap | Hartford Healthcare vs. Qs Large Cap |
| Dunham Dynamic vs. Msift High Yield | Dunham Dynamic vs. Lord Abbett Short | Dunham Dynamic vs. Catalystsmh High Income | Dunham Dynamic vs. Siit High Yield |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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