Correlation Between The Hartford and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both The Hartford and Strategic Asset 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 Strategic Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Healthcare and Strategic Asset Management, you can compare the effects of market volatilities on The Hartford and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Strategic Asset.
Diversification Opportunities for The Hartford and Strategic Asset
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between The and Strategic is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Healthcare are associated (or correlated) with Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of The Hartford i.e., The Hartford and Strategic Asset go up and down completely randomly.
Pair Corralation between The Hartford and Strategic Asset
Assuming the 90 days horizon The Hartford Healthcare is expected to generate 1.8 times more return on investment than Strategic Asset. However, The Hartford is 1.8 times more volatile than Strategic Asset Management. It trades about 0.19 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.13 per unit of risk. If you would invest 3,296 in The Hartford Healthcare on July 26, 2025 and sell it today you would earn a total of 381.00 from holding The Hartford Healthcare or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Healthcare vs. Strategic Asset Management
Performance |
| Timeline |
| The Hartford Healthcare |
| Strategic Asset Mana |
The Hartford and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Strategic Asset
The main advantage of trading using opposite The Hartford and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| The Hartford vs. Blackrock Moderate Prepared | The Hartford vs. Columbia Emerging Markets | The Hartford vs. Wells Fargo Advantage | The Hartford vs. Wells Fargo Advantage |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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