Correlation Between Stone Ridge and Hartford Healthcare
Can any of the company-specific risk be diversified away by investing in both Stone Ridge 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 Stone Ridge and Hartford Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Ridge Diversified and Hartford Healthcare Hls, you can compare the effects of market volatilities on Stone Ridge 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 Stone Ridge with a short position of Hartford Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Ridge and Hartford Healthcare.
Diversification Opportunities for Stone Ridge and Hartford Healthcare
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stone and Hartford is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Stone Ridge Diversified 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 Stone Ridge 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 Stone Ridge Diversified 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 Stone Ridge i.e., Stone Ridge and Hartford Healthcare go up and down completely randomly.
Pair Corralation between Stone Ridge and Hartford Healthcare
Assuming the 90 days horizon Stone Ridge Diversified is expected to generate 0.5 times more return on investment than Hartford Healthcare. However, Stone Ridge Diversified is 2.0 times less risky than Hartford Healthcare. It trades about 0.09 of its potential returns per unit of risk. Hartford Healthcare Hls is currently generating about 0.01 per unit of risk. If you would invest 889.00 in Stone Ridge Diversified on September 25, 2024 and sell it today you would earn a total of 169.00 from holding Stone Ridge Diversified or generate 19.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stone Ridge Diversified vs. Hartford Healthcare Hls
Performance |
| Timeline |
| Stone Ridge Diversified |
| Hartford Healthcare Hls |
Stone Ridge and Hartford Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Ridge and Hartford Healthcare
The main advantage of trading using opposite Stone Ridge and Hartford Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Ridge 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.| Stone Ridge vs. Gmo Global Equity | Stone Ridge vs. Qs Global Equity | Stone Ridge vs. Ab Select Equity | Stone Ridge vs. Artisan Select Equity |
| Hartford Healthcare vs. Lord Abbett Diversified | Hartford Healthcare vs. Pimco Diversified Income | Hartford Healthcare vs. Adams Diversified Equity | Hartford Healthcare vs. Small Cap Stock |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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