Correlation Between Hartford Financial and Sampo OYJ
Can any of the company-specific risk be diversified away by investing in both Hartford Financial and Sampo OYJ 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 Sampo OYJ 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 Sampo OYJ, you can compare the effects of market volatilities on Hartford Financial and Sampo OYJ 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 Sampo OYJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Financial and Sampo OYJ.
Diversification Opportunities for Hartford Financial and Sampo OYJ
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hartford and Sampo is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Financial and Sampo OYJ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo OYJ 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 Sampo OYJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo OYJ has no effect on the direction of Hartford Financial i.e., Hartford Financial and Sampo OYJ go up and down completely randomly.
Pair Corralation between Hartford Financial and Sampo OYJ
Assuming the 90 days trading horizon The Hartford Financial is expected to generate 0.61 times more return on investment than Sampo OYJ. However, The Hartford Financial is 1.64 times less risky than Sampo OYJ. It trades about 0.08 of its potential returns per unit of risk. Sampo OYJ is currently generating about -0.2 per unit of risk. If you would invest 2,481 in The Hartford Financial on August 24, 2024 and sell it today you would earn a total of 21.00 from holding The Hartford Financial or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Financial vs. Sampo OYJ
Performance |
| Timeline |
| The Hartford Financial |
| Sampo OYJ |
Hartford Financial and Sampo OYJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Financial and Sampo OYJ
The main advantage of trading using opposite Hartford Financial and Sampo OYJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Financial position performs unexpectedly, Sampo OYJ 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 Sampo OYJ will offset losses from the drop in Sampo OYJ'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 |
| Sampo OYJ vs. Berkshire Hathaway | Sampo OYJ vs. Berkshire Hathaway | Sampo OYJ vs. Allianz SE | Sampo OYJ vs. Zurich Insurance Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
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