Correlation Between James Aggressive and Hartford Healthcare

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Can any of the company-specific risk be diversified away by investing in both James Aggressive and Hartford Healthcare 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 James Aggressive and Hartford Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Aggressive Allocation and Hartford Healthcare Hls, you can compare the effects of market volatilities on James Aggressive and Hartford Healthcare 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 James Aggressive with a short position of Hartford Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Aggressive and Hartford Healthcare.

Diversification Opportunities for James Aggressive and Hartford Healthcare

JamesHartfordDiversified AwayJamesHartfordDiversified Away100%
0.74
  Correlation Coefficient

Poor diversification

The 3 months correlation between James and Hartford is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding James Aggressive Allocation and Hartford Healthcare Hls in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Healthcare Hls and James Aggressive 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 James Aggressive Allocation are associated (or correlated) with Hartford Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Healthcare Hls has no effect on the direction of James Aggressive i.e., James Aggressive and Hartford Healthcare go up and down completely randomly.

Pair Corralation between James Aggressive and Hartford Healthcare

Assuming the 90 days horizon James Aggressive Allocation is expected to under-perform the Hartford Healthcare. But the mutual fund apears to be less risky and, when comparing its historical volatility, James Aggressive Allocation is 1.06 times less risky than Hartford Healthcare. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Hartford Healthcare Hls is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  1,499  in Hartford Healthcare Hls on November 25, 2024 and sell it today you would lose (11.00) from holding Hartford Healthcare Hls or give up 0.73% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

James Aggressive Allocation  vs.  Hartford Healthcare Hls

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -4-202
JavaScript chart by amCharts 3.21.15JAVAX HBGHX
       Timeline  
James Aggressive All 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days James Aggressive Allocation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, James Aggressive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb14.114.214.314.414.514.614.7
Hartford Healthcare Hls 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Hartford Healthcare Hls has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical indicators, Hartford Healthcare is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb14.214.414.614.81515.215.4

James Aggressive and Hartford Healthcare Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.25-1.69-1.13-0.57-0.020.511.071.632.192.75 0.20.40.60.8
JavaScript chart by amCharts 3.21.15JAVAX HBGHX
       Returns  

Pair Trading with James Aggressive and Hartford Healthcare

The main advantage of trading using opposite James Aggressive and Hartford Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Aggressive position performs unexpectedly, Hartford Healthcare 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 Hartford Healthcare will offset losses from the drop in Hartford Healthcare's long position.
The idea behind James Aggressive Allocation and Hartford Healthcare Hls pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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