Correlation Between Hartford Healthcare and Calvert Equity
Can any of the company-specific risk be diversified away by investing in both Hartford Healthcare and Calvert Equity 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 Healthcare and Calvert Equity 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 Calvert Equity Portfolio, you can compare the effects of market volatilities on Hartford Healthcare and Calvert Equity 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 Healthcare with a short position of Calvert Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Healthcare and Calvert Equity.
Diversification Opportunities for Hartford Healthcare and Calvert Equity
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hartford and Calvert is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare and Calvert Equity Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Equity Portfolio and Hartford Healthcare 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 Calvert Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Equity Portfolio has no effect on the direction of Hartford Healthcare i.e., Hartford Healthcare and Calvert Equity go up and down completely randomly.
Pair Corralation between Hartford Healthcare and Calvert Equity
Assuming the 90 days horizon The Hartford Healthcare is expected to generate 1.35 times more return on investment than Calvert Equity. However, Hartford Healthcare is 1.35 times more volatile than Calvert Equity Portfolio. It trades about 0.07 of its potential returns per unit of risk. Calvert Equity Portfolio is currently generating about 0.07 per unit of risk. If you would invest 3,620 in The Hartford Healthcare on May 29, 2025 and sell it today you would earn a total of 130.00 from holding The Hartford Healthcare or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Healthcare vs. Calvert Equity Portfolio
Performance |
| Timeline |
| The Hartford Healthcare |
| Calvert Equity Portfolio |
Hartford Healthcare and Calvert Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Healthcare and Calvert Equity
The main advantage of trading using opposite Hartford Healthcare and Calvert Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Healthcare position performs unexpectedly, Calvert Equity 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 Calvert Equity will offset losses from the drop in Calvert Equity's long position.| Hartford Healthcare vs. Old Westbury Large | Hartford Healthcare vs. Qs Global Equity | Hartford Healthcare vs. Growth Allocation Fund | Hartford Healthcare vs. Guidemark Large Cap |
| Calvert Equity vs. Lord Abbett Short | Calvert Equity vs. Neuberger Berman Income | Calvert Equity vs. Jpmorgan High Yield | Calvert Equity vs. Ab High Income |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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