Correlation Between Hartford Healthcare and Specialized Technology
Can any of the company-specific risk be diversified away by investing in both Hartford Healthcare and Specialized Technology 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 Specialized Technology 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 Specialized Technology Fund, you can compare the effects of market volatilities on Hartford Healthcare and Specialized Technology 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 Specialized Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Healthcare and Specialized Technology.
Diversification Opportunities for Hartford Healthcare and Specialized Technology
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and Specialized is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Healthcare Hls and Specialized Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Specialized Technology 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 Specialized Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Specialized Technology has no effect on the direction of Hartford Healthcare i.e., Hartford Healthcare and Specialized Technology go up and down completely randomly.
Pair Corralation between Hartford Healthcare and Specialized Technology
Assuming the 90 days horizon Hartford Healthcare Hls is expected to generate 0.99 times more return on investment than Specialized Technology. However, Hartford Healthcare Hls is 1.01 times less risky than Specialized Technology. It trades about 0.3 of its potential returns per unit of risk. Specialized Technology Fund is currently generating about 0.26 per unit of risk. If you would invest 1,641 in Hartford Healthcare Hls on November 3, 2024 and sell it today you would earn a total of 94.00 from holding Hartford Healthcare Hls or generate 5.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Healthcare Hls vs. Specialized Technology Fund
Performance |
| Timeline |
| Hartford Healthcare Hls |
| Specialized Technology |
Hartford Healthcare and Specialized Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Healthcare and Specialized Technology
The main advantage of trading using opposite Hartford Healthcare and Specialized Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Healthcare position performs unexpectedly, Specialized Technology 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 Specialized Technology will offset losses from the drop in Specialized Technology's long position.| Hartford Healthcare vs. William Blair Small | Hartford Healthcare vs. Small Cap Value Fund | Hartford Healthcare vs. American Century Etf | Hartford Healthcare vs. Valic Company I |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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