Correlation Between Virtus and Hartford Total

Can any of the company-specific risk be diversified away by investing in both Virtus and Hartford Total 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 Virtus and Hartford Total into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Virtus and Hartford Total Return, you can compare the effects of market volatilities on Virtus and Hartford Total 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 Virtus with a short position of Hartford Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus and Hartford Total.

Diversification Opportunities for Virtus and Hartford Total

-0.26

Correlation Coefficient

Virtus  Hartford Total

Very good diversification

The 3 months correlation between Virtus and Hartford is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Virtus and Hartford Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Total Return and Virtus 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 Virtus are associated (or correlated) with Hartford Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Total Return has no effect on the direction of Virtus i.e., Virtus and Hartford Total go up and down completely randomly.

Pair Corralation between Virtus and Hartford Total

If you would invest  2,115  in Virtus on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Virtus or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Virtus  vs.  Hartford Total Return

Virtus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Virtus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Virtus is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Hartford Total Return

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hartford Total Return has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hartford Total is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Virtus and Hartford Total

The main advantage of trading using opposite Virtus and Hartford Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus position performs unexpectedly, Hartford Total 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 Total will offset losses from the drop in Hartford Total's long position.

The idea behind Virtus and Hartford Total Return 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.