Correlation Between Hartford Healthcare and Sit Mid
Can any of the company-specific risk be diversified away by investing in both Hartford Healthcare and Sit Mid 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 Sit Mid 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 Sit Mid Cap, you can compare the effects of market volatilities on Hartford Healthcare and Sit Mid 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 Sit Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Healthcare and Sit Mid.
Diversification Opportunities for Hartford Healthcare and Sit Mid
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hartford and Sit is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Healthcare Hls and Sit Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Mid Cap 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 Sit Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Mid Cap has no effect on the direction of Hartford Healthcare i.e., Hartford Healthcare and Sit Mid go up and down completely randomly.
Pair Corralation between Hartford Healthcare and Sit Mid
Assuming the 90 days horizon Hartford Healthcare is expected to generate 12.32 times less return on investment than Sit Mid. But when comparing it to its historical volatility, Hartford Healthcare Hls is 1.29 times less risky than Sit Mid. It trades about 0.01 of its potential returns per unit of risk. Sit Mid Cap is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,219 in Sit Mid Cap on September 1, 2024 and sell it today you would earn a total of 342.00 from holding Sit Mid Cap or generate 15.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Hartford Healthcare Hls vs. Sit Mid Cap
Performance |
| Timeline |
| Hartford Healthcare Hls |
| Sit Mid Cap |
Hartford Healthcare and Sit Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Healthcare and Sit Mid
The main advantage of trading using opposite Hartford Healthcare and Sit Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Healthcare position performs unexpectedly, Sit Mid 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 Sit Mid will offset losses from the drop in Sit Mid's long position.| Hartford Healthcare vs. Precious Metals And | Hartford Healthcare vs. Gabelli Gold Fund | Hartford Healthcare vs. James Balanced Golden | Hartford Healthcare vs. Great West Goldman Sachs |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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