Correlation Between The Hartford and Jpmorgan

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

By analyzing existing cross correlation between The Hartford International and Jpmorgan Equity Fund, you can compare the effects of market volatilities on The Hartford and Jpmorgan 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 Jpmorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Jpmorgan.

Diversification Opportunities for The Hartford and Jpmorgan

-0.31

Correlation Coefficient

The Hartford  Jpmorgan

Very good diversification

The 3 months correlation between The and Jpmorgan is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford International and Jpmorgan Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Equity 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 International are associated (or correlated) with Jpmorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Equity has no effect on the direction of The Hartford i.e., The Hartford and Jpmorgan go up and down completely randomly.

Pair Corralation between The Hartford and Jpmorgan

Assuming the 90 days horizon The Hartford International is expected to generate 0.84 times more return on investment than Jpmorgan. However, The Hartford International is 1.19 times less risky than Jpmorgan. It trades about 0.18 of its potential returns per unit of risk. Jpmorgan Equity Fund is currently generating about -0.07 per unit of risk. If you would invest  1,862  in The Hartford International on December 20, 2024 and sell it today you would earn a total of  184.00  from holding The Hartford International or generate 9.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

The Hartford International  vs.  Jpmorgan Equity Fund

Hartford Interna

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford International are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, The Hartford may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Jpmorgan Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jpmorgan Equity Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Jpmorgan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with The Hartford and Jpmorgan

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

The idea behind The Hartford International and Jpmorgan Equity Fund 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.