Correlation Between Jhancock Real and Hartford Healthcare

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

By analyzing existing cross correlation between Jhancock Real Estate and Hartford Healthcare Hls, you can compare the effects of market volatilities on Jhancock Real 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 Jhancock Real with a short position of Hartford Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Hartford Healthcare.

Diversification Opportunities for Jhancock Real and Hartford Healthcare

-0.41

Correlation Coefficient

Jhancock Real  Hartford Healthcare

Very good diversification

The 3 months correlation between Jhancock and HARTFORD is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate 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 Jhancock Real 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 Jhancock Real Estate 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 Jhancock Real i.e., Jhancock Real and Hartford Healthcare go up and down completely randomly.

Pair Corralation between Jhancock Real and Hartford Healthcare

Assuming the 90 days horizon Jhancock Real Estate is expected to generate 1.06 times more return on investment than Hartford Healthcare. However, Jhancock Real is 1.06 times more volatile than Hartford Healthcare Hls. It trades about 0.09 of its potential returns per unit of risk. Hartford Healthcare Hls is currently generating about -0.13 per unit of risk. If you would invest  1,278  in Jhancock Real Estate on September 5, 2024 and sell it today you would earn a total of  62.00  from holding Jhancock Real Estate or generate 4.85% return on investment over 90 days.

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

Jhancock Real Estate  vs.  Hartford Healthcare Hls

Jhancock Real Estate

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jhancock Real Estate are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Jhancock Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Hartford Healthcare Hls

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Jhancock Real and Hartford Healthcare

The main advantage of trading using opposite Jhancock Real and Hartford Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real 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.

The idea behind Jhancock Real Estate and Hartford Healthcare Hls 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.