Correlation Between Highland Long/short and Hartford Healthcare
Can any of the company-specific risk be diversified away by investing in both Highland Long/short 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 Highland Long/short and Hartford Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highland Longshort Healthcare and Hartford Healthcare Hls, you can compare the effects of market volatilities on Highland Long/short 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 Highland Long/short with a short position of Hartford Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Long/short and Hartford Healthcare.
Diversification Opportunities for Highland Long/short and Hartford Healthcare
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Highland and Hartford is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare 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 Highland Long/short 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 Highland Longshort Healthcare 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 Highland Long/short i.e., Highland Long/short and Hartford Healthcare go up and down completely randomly.
Pair Corralation between Highland Long/short and Hartford Healthcare
Assuming the 90 days horizon Highland Longshort Healthcare is expected to under-perform the Hartford Healthcare. But the mutual fund apears to be less risky and, when comparing its historical volatility, Highland Longshort Healthcare is 3.87 times less risky than Hartford Healthcare. The mutual fund trades about -0.05 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 1,633 in Hartford Healthcare Hls on December 30, 2024 and sell it today you would earn a total of 16.00 from holding Hartford Healthcare Hls or generate 0.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Highland Longshort Healthcare vs. Hartford Healthcare Hls
Performance |
Timeline |
Highland Long/short |
Hartford Healthcare Hls |
Highland Long/short and Hartford Healthcare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Highland Long/short and Hartford Healthcare
The main advantage of trading using opposite Highland Long/short and Hartford Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Long/short 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.Highland Long/short vs. Qs Growth Fund | Highland Long/short vs. T Rowe Price | Highland Long/short vs. Qs Moderate Growth | Highland Long/short vs. Ftfa Franklin Templeton Growth |
Hartford Healthcare vs. Calvert High Yield | Hartford Healthcare vs. Western Asset High | Hartford Healthcare vs. Tiaa Cref High Yield Fund | Hartford Healthcare vs. Victory High Yield |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
CEOs Directory Screen CEOs from public companies around the world | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |