Correlation Between Hartford Capital and The Hartford

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

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

Diversification Opportunities for Hartford Capital and The Hartford

0.96

Correlation Coefficient

Hartford Capital  The Hartford

Almost no diversification

The 3 months correlation between Hartford and The is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Capital Appreciation and The Hartford Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Dividend and Hartford Capital 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 Capital Appreciation are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Dividend has no effect on the direction of Hartford Capital i.e., Hartford Capital and The Hartford go up and down completely randomly.

Pair Corralation between Hartford Capital and The Hartford

Assuming the 90 days horizon Hartford Capital Appreciation is expected to generate 1.22 times more return on investment than The Hartford. However, Hartford Capital is 1.22 times more volatile than The Hartford Dividend. It trades about 0.2 of its potential returns per unit of risk. The Hartford Dividend is currently generating about 0.13 per unit of risk. If you would invest  5,038  in Hartford Capital Appreciation on September 4, 2024 and sell it today you would earn a total of  452.00  from holding Hartford Capital Appreciation or generate 8.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Hartford Capital Appreciation  vs.  The Hartford Dividend

Hartford Capital App

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hartford Capital Appreciation are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Hartford Capital may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Hartford Dividend

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Dividend are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, The Hartford is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hartford Capital and The Hartford

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

The idea behind Hartford Capital Appreciation and The Hartford Dividend 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.