Correlation Between Hargreaves Lansdown and General American
Can any of the company-specific risk be diversified away by investing in both Hargreaves Lansdown and General American 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 Hargreaves Lansdown and General American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hargreaves Lansdown PLC and General American Investors, you can compare the effects of market volatilities on Hargreaves Lansdown and General American 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 Hargreaves Lansdown with a short position of General American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hargreaves Lansdown and General American.
Diversification Opportunities for Hargreaves Lansdown and General American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hargreaves and General is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hargreaves Lansdown PLC and General American Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General American Inv and Hargreaves Lansdown 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 Hargreaves Lansdown PLC are associated (or correlated) with General American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General American Inv has no effect on the direction of Hargreaves Lansdown i.e., Hargreaves Lansdown and General American go up and down completely randomly.
Pair Corralation between Hargreaves Lansdown and General American
If you would invest (100.00) in Hargreaves Lansdown PLC on December 1, 2024 and sell it today you would earn a total of 100.00 from holding Hargreaves Lansdown PLC or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hargreaves Lansdown PLC vs. General American Investors
Performance |
| Timeline |
| Hargreaves Lansdown PLC |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| General American Inv |
Hargreaves Lansdown and General American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hargreaves Lansdown and General American
The main advantage of trading using opposite Hargreaves Lansdown and General American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hargreaves Lansdown position performs unexpectedly, General American 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 General American will offset losses from the drop in General American's long position.| Hargreaves Lansdown vs. Schroders PLC | Hargreaves Lansdown vs. Tri Continental Closed | Hargreaves Lansdown vs. Adams Natural Resources | Hargreaves Lansdown vs. Adams Diversified Equity |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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