Correlation Between Hartford Healthcare and Voya Global
Can any of the company-specific risk be diversified away by investing in both Hartford Healthcare and Voya Global 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 Voya Global 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 Voya Global Bond, you can compare the effects of market volatilities on Hartford Healthcare and Voya Global 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 Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Healthcare and Voya Global.
Diversification Opportunities for Hartford Healthcare and Voya Global
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hartford and Voya is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Healthcare Hls and Voya Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Bond 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 Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Bond has no effect on the direction of Hartford Healthcare i.e., Hartford Healthcare and Voya Global go up and down completely randomly.
Pair Corralation between Hartford Healthcare and Voya Global
Assuming the 90 days horizon Hartford Healthcare Hls is expected to generate 2.1 times more return on investment than Voya Global. However, Hartford Healthcare is 2.1 times more volatile than Voya Global Bond. It trades about 0.14 of its potential returns per unit of risk. Voya Global Bond is currently generating about -0.04 per unit of risk. If you would invest 1,622 in Hartford Healthcare Hls on October 20, 2024 and sell it today you would earn a total of 33.00 from holding Hartford Healthcare Hls or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Healthcare Hls vs. Voya Global Bond
Performance |
| Timeline |
| Hartford Healthcare Hls |
| Voya Global Bond |
Hartford Healthcare and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Healthcare and Voya Global
The main advantage of trading using opposite Hartford Healthcare and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Healthcare position performs unexpectedly, Voya Global 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 Voya Global will offset losses from the drop in Voya Global's long position.| Hartford Healthcare vs. Schwab Government Money | Hartford Healthcare vs. Franklin Adjustable Government | Hartford Healthcare vs. Hsbc Government Money | Hartford Healthcare vs. Dreyfus Government Cash |
| Voya Global vs. Global Diversified Income | Voya Global vs. Lord Abbett Diversified | Voya Global vs. Conservative Balanced Allocation | Voya Global vs. Guidepath Conservative Income |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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