Correlation Between Hartford Healthcare and Great West
Can any of the company-specific risk be diversified away by investing in both Hartford Healthcare and Great West 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 Great West 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 Great West Goldman Sachs, you can compare the effects of market volatilities on Hartford Healthcare and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Healthcare and Great West.
Diversification Opportunities for Hartford Healthcare and Great West
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hartford and Great is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Healthcare Hls and Great West Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Goldman 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Goldman has no effect on the direction of Hartford Healthcare i.e., Hartford Healthcare and Great West go up and down completely randomly.
Pair Corralation between Hartford Healthcare and Great West
Assuming the 90 days horizon Hartford Healthcare Hls is expected to generate 0.2 times more return on investment than Great West. However, Hartford Healthcare Hls is 5.02 times less risky than Great West. It trades about 0.17 of its potential returns per unit of risk. Great West Goldman Sachs is currently generating about 0.02 per unit of risk. If you would invest 1,663 in Hartford Healthcare Hls on October 26, 2024 and sell it today you would earn a total of 45.00 from holding Hartford Healthcare Hls or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Healthcare Hls vs. Great West Goldman Sachs
Performance |
| Timeline |
| Hartford Healthcare Hls |
| Great West Goldman |
Hartford Healthcare and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Healthcare and Great West
The main advantage of trading using opposite Hartford Healthcare and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Healthcare position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.| Hartford Healthcare vs. Oil Gas Ultrasector | Hartford Healthcare vs. Alpsalerian Energy Infrastructure | Hartford Healthcare vs. Virtus Select Mlp | Hartford Healthcare vs. Goldman Sachs Mlp |
| Great West vs. Allianzgi Health Sciences | Great West vs. Alphacentric Lifesci Healthcare | Great West vs. Hartford Healthcare Hls | Great West vs. Prudential Health Sciences |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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