Correlation Between Hartford Large and BlackRock ETF

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

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

Diversification Opportunities for Hartford Large and BlackRock ETF

0.45

Correlation Coefficient

Hartford Large  BlackRock ETF

Very weak diversification

The 3 months correlation between Hartford and BlackRock is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Large Cap and BlackRock ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock ETF Trust and Hartford Large 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 Hartford Large Cap are associated (or correlated) with BlackRock ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock ETF Trust has no effect on the direction of Hartford Large i.e., Hartford Large and BlackRock ETF go up and down completely randomly.

Pair Corralation between Hartford Large and BlackRock ETF

If you would invest  2,235  in Hartford Large Cap on October 26, 2024 and sell it today you would earn a total of  254.00  from holding Hartford Large Cap or generate 11.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.69%
Values	Daily Returns

Hartford Large Cap  vs.  BlackRock ETF Trust

Hartford Large Cap

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hartford Large Cap are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Hartford Large may actually be approaching a critical reversion point that can send shares even higher in February 2025.

BlackRock ETF Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BlackRock ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical indicators, BlackRock ETF is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Hartford Large and BlackRock ETF

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

The idea behind Hartford Large Cap and BlackRock ETF Trust 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.