Correlation Between Hartford Healthcare and Eic Value
Can any of the company-specific risk be diversified away by investing in both Hartford Healthcare and Eic Value 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 Eic Value 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 Eic Value Fund, you can compare the effects of market volatilities on Hartford Healthcare and Eic Value 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 Eic Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Healthcare and Eic Value.
Diversification Opportunities for Hartford Healthcare and Eic Value
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hartford and Eic is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Healthcare Hls and Eic Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eic Value Fund 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 Eic Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eic Value Fund has no effect on the direction of Hartford Healthcare i.e., Hartford Healthcare and Eic Value go up and down completely randomly.
Pair Corralation between Hartford Healthcare and Eic Value
Assuming the 90 days horizon Hartford Healthcare Hls is expected to under-perform the Eic Value. In addition to that, Hartford Healthcare is 1.02 times more volatile than Eic Value Fund. It trades about -0.02 of its total potential returns per unit of risk. Eic Value Fund is currently generating about 0.02 per unit of volatility. If you would invest 1,702 in Eic Value Fund on October 17, 2024 and sell it today you would earn a total of 5.00 from holding Eic Value Fund or generate 0.29% 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. Eic Value Fund
Performance |
| Timeline |
| Hartford Healthcare Hls |
| Eic Value Fund |
Hartford Healthcare and Eic Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Healthcare and Eic Value
The main advantage of trading using opposite Hartford Healthcare and Eic Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Healthcare position performs unexpectedly, Eic Value 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 Eic Value will offset losses from the drop in Eic Value's long position.| Hartford Healthcare vs. Vy Columbia Small | Hartford Healthcare vs. Lebenthal Lisanti Small | Hartford Healthcare vs. Franklin Small Cap | Hartford Healthcare vs. Touchstone Small Cap |
| Eic Value vs. Nasdaq 100 Profund Nasdaq 100 | Eic Value vs. Volumetric Fund Volumetric | Eic Value vs. Commodities Strategy Fund | Eic Value vs. Issachar Fund Class |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |