Correlation Between Hartford Financial and Swiss Life
Can any of the company-specific risk be diversified away by investing in both Hartford Financial and Swiss Life 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 Swiss Life 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 Swiss Life Holding, you can compare the effects of market volatilities on Hartford Financial and Swiss Life 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 Swiss Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Financial and Swiss Life.
Diversification Opportunities for Hartford Financial and Swiss Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hartford and Swiss is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Financial and Swiss Life Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Life Holding 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 Swiss Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Life Holding has no effect on the direction of Hartford Financial i.e., Hartford Financial and Swiss Life go up and down completely randomly.
Pair Corralation between Hartford Financial and Swiss Life
If you would invest 3,103 in Swiss Life Holding on September 4, 2024 and sell it today you would earn a total of 1,043 from holding Swiss Life Holding or generate 33.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
The Hartford Financial vs. Swiss Life Holding
Performance |
| Timeline |
| The Hartford Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Swiss Life Holding |
Hartford Financial and Swiss Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Financial and Swiss Life
The main advantage of trading using opposite Hartford Financial and Swiss Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Financial position performs unexpectedly, Swiss Life 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 Swiss Life will offset losses from the drop in Swiss Life's long position.| Hartford Financial vs. Arch Capital Group | Hartford Financial vs. Athene Holding | Hartford Financial vs. Athene Holding | Hartford Financial vs. Assicurazioni Generali SpA |
| Swiss Life vs. Allianz SE | Swiss Life vs. Swiss Life Holding | Swiss Life vs. Zurich Insurance Group | Swiss Life vs. Berkshire Hathaway |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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