Correlation Between Western Asset and Hartford Healthcare
Can any of the company-specific risk be diversified away by investing in both Western Asset 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 Western Asset and Hartford Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Diversified and Hartford Healthcare Hls, you can compare the effects of market volatilities on Western Asset 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 Western Asset with a short position of Hartford Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Hartford Healthcare.
Diversification Opportunities for Western Asset and Hartford Healthcare
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and Hartford is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset 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 Western Asset 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 Western Asset 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 Western Asset i.e., Western Asset and Hartford Healthcare go up and down completely randomly.
Pair Corralation between Western Asset and Hartford Healthcare
Assuming the 90 days horizon Western Asset Diversified is expected to under-perform the Hartford Healthcare. But the mutual fund apears to be less risky and, when comparing its historical volatility, Western Asset Diversified is 2.3 times less risky than Hartford Healthcare. The mutual fund trades about -0.36 of its potential returns per unit of risk. The Hartford Healthcare Hls is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,681 in Hartford Healthcare Hls on October 13, 2024 and sell it today you would lose (5.00) from holding Hartford Healthcare Hls or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Diversified vs. Hartford Healthcare Hls
Performance |
| Timeline |
| Western Asset Diversified |
| Hartford Healthcare Hls |
Western Asset and Hartford Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Hartford Healthcare
The main advantage of trading using opposite Western Asset and Hartford Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset 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.| Western Asset vs. Franklin Vertible Securities | Western Asset vs. Columbia Convertible Securities | Western Asset vs. Mainstay Vertible Fund | Western Asset vs. Calamos Vertible Fund |
| Hartford Healthcare vs. The Gold Bullion | Hartford Healthcare vs. Fidelity Advisor Gold | Hartford Healthcare vs. Europac Gold Fund | Hartford Healthcare vs. Gamco Global Gold |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |