Correlation Between NYSE Composite and Hartford Healthcare
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Hartford Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Hartford Healthcare Hls, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Hartford Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Hartford Healthcare.
Diversification Opportunities for NYSE Composite and Hartford Healthcare
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Hartford is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Hartford Healthcare go up and down completely randomly.
Pair Corralation between NYSE Composite and Hartford Healthcare
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.78 times more return on investment than Hartford Healthcare. However, NYSE Composite is 1.28 times less risky than Hartford Healthcare. It trades about 0.14 of its potential returns per unit of risk. Hartford Healthcare Hls is currently generating about -0.16 per unit of risk. If you would invest 1,914,954 in NYSE Composite on August 29, 2024 and sell it today you would earn a total of 106,991 from holding NYSE Composite or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Hartford Healthcare Hls
Performance |
| Timeline |
NYSE Composite and Hartford Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Hartford Healthcare Hls
Pair trading matchups for Hartford Healthcare
Pair Trading with NYSE Composite and Hartford Healthcare
The main advantage of trading using opposite NYSE Composite and Hartford Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Sphere Entertainment Co | NYSE Composite vs. Weibo Corp | NYSE Composite vs. BCE Inc | NYSE Composite vs. Pinterest |
| Hartford Healthcare vs. Pimco High Yield | Hartford Healthcare vs. Tiaa Cref High Yield Fund | Hartford Healthcare vs. Virtus High Yield | Hartford Healthcare vs. Prudential High Yield |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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