Correlation Between Hargreaves Lansdown and Standard Life
Can any of the company-specific risk be diversified away by investing in both Hargreaves Lansdown and Standard 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 Hargreaves Lansdown and Standard Life 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 Standard Life Aberdeen, you can compare the effects of market volatilities on Hargreaves Lansdown and Standard 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 Hargreaves Lansdown with a short position of Standard Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hargreaves Lansdown and Standard Life.
Diversification Opportunities for Hargreaves Lansdown and Standard Life
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hargreaves and Standard is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hargreaves Lansdown PLC and Standard Life Aberdeen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Life Aberdeen 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 Standard Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Life Aberdeen has no effect on the direction of Hargreaves Lansdown i.e., Hargreaves Lansdown and Standard Life go up and down completely randomly.
Pair Corralation between Hargreaves Lansdown and Standard Life
If you would invest 714.00 in Standard Life Aberdeen on September 3, 2024 and sell it today you would lose (23.00) from holding Standard Life Aberdeen or give up 3.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.6% |
| Values | Daily Returns |
Hargreaves Lansdown PLC vs. Standard Life Aberdeen
Performance |
| Timeline |
| Hargreaves Lansdown PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Standard Life Aberdeen |
Hargreaves Lansdown and Standard Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hargreaves Lansdown and Standard Life
The main advantage of trading using opposite Hargreaves Lansdown and Standard Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hargreaves Lansdown position performs unexpectedly, Standard 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 Standard Life will offset losses from the drop in Standard Life'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 |
| Standard Life vs. Tri Continental Closed | Standard Life vs. Adams Natural Resources | Standard Life vs. Adams Diversified Equity | Standard Life vs. Schroders PLC |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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