Correlation Between The Hartford and 532457CF3

Can any of the company-specific risk be diversified away by investing in both The Hartford and 532457CF3 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 The Hartford and 532457CF3 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Hartford Growth and LLY 47 27 FEB 33, you can compare the effects of market volatilities on The Hartford and 532457CF3 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 The Hartford with a short position of 532457CF3. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and 532457CF3.

Diversification Opportunities for The Hartford and 532457CF3

-0.35

Correlation Coefficient

The Hartford  532457CF3

Very good diversification

The 3 months correlation between The and 532457CF3 is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Growth and LLY 47 27 FEB 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LLY 47 27 and The Hartford 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 The Hartford Growth are associated (or correlated) with 532457CF3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LLY 47 27 has no effect on the direction of The Hartford i.e., The Hartford and 532457CF3 go up and down completely randomly.

Pair Corralation between The Hartford and 532457CF3

Assuming the 90 days horizon The Hartford Growth is expected to generate 2.05 times more return on investment than 532457CF3. However, The Hartford is 2.05 times more volatile than LLY 47 27 FEB 33. It trades about 0.11 of its potential returns per unit of risk. LLY 47 27 FEB 33 is currently generating about -0.01 per unit of risk. If you would invest  4,059  in The Hartford Growth on October 12, 2024 and sell it today you would earn a total of  3,495  from holding The Hartford Growth or generate 86.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	92.12%
Values	Daily Returns

The Hartford Growth  vs.  LLY 47 27 FEB 33

Hartford Growth

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Growth are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, The Hartford is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

LLY 47 27

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days LLY 47 27 FEB 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 532457CF3 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with The Hartford and 532457CF3

The main advantage of trading using opposite The Hartford and 532457CF3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, 532457CF3 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 532457CF3 will offset losses from the drop in 532457CF3's long position.

The idea behind The Hartford Growth and LLY 47 27 FEB 33 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.