Correlation Between Hartford Financial and Assicurazioni Generali
Can any of the company-specific risk be diversified away by investing in both Hartford Financial and Assicurazioni Generali 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 Financial and Assicurazioni Generali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Financial and Assicurazioni Generali SpA, you can compare the effects of market volatilities on Hartford Financial and Assicurazioni Generali 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 Financial with a short position of Assicurazioni Generali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Financial and Assicurazioni Generali.
Diversification Opportunities for Hartford Financial and Assicurazioni Generali
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hartford and Assicurazioni is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Financial and Assicurazioni Generali SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assicurazioni Generali and Hartford Financial 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 The Hartford Financial are associated (or correlated) with Assicurazioni Generali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assicurazioni Generali has no effect on the direction of Hartford Financial i.e., Hartford Financial and Assicurazioni Generali go up and down completely randomly.
Pair Corralation between Hartford Financial and Assicurazioni Generali
Assuming the 90 days trading horizon Hartford Financial is expected to generate 1.84 times less return on investment than Assicurazioni Generali. In addition to that, Hartford Financial is 1.2 times more volatile than Assicurazioni Generali SpA. It trades about 0.1 of its total potential returns per unit of risk. Assicurazioni Generali SpA is currently generating about 0.22 per unit of volatility. If you would invest 2,707 in Assicurazioni Generali SpA on August 27, 2024 and sell it today you would earn a total of 51.00 from holding Assicurazioni Generali SpA or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Financial vs. Assicurazioni Generali SpA
Performance |
| Timeline |
| The Hartford Financial |
| Assicurazioni Generali |
Hartford Financial and Assicurazioni Generali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Financial and Assicurazioni Generali
The main advantage of trading using opposite Hartford Financial and Assicurazioni Generali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Financial position performs unexpectedly, Assicurazioni Generali 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 Assicurazioni Generali will offset losses from the drop in Assicurazioni Generali's long position.| Hartford Financial vs. Arch Capital Group | Hartford Financial vs. Athene Holding | Hartford Financial vs. Arch Capital Group | Hartford Financial vs. Athene Holding |
| Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. Arch Capital Group | Assicurazioni Generali vs. NN Group NV |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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