Correlation Between Hartford Healthcare and Alger Spectra
Can any of the company-specific risk be diversified away by investing in both Hartford Healthcare and Alger Spectra 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 Alger Spectra 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 Alger Spectra, you can compare the effects of market volatilities on Hartford Healthcare and Alger Spectra 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 Alger Spectra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Healthcare and Alger Spectra.
Diversification Opportunities for Hartford Healthcare and Alger Spectra
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hartford and Alger is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare and Alger Spectra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Spectra 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 Alger Spectra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Spectra has no effect on the direction of Hartford Healthcare i.e., Hartford Healthcare and Alger Spectra go up and down completely randomly.
Pair Corralation between Hartford Healthcare and Alger Spectra
Assuming the 90 days horizon The Hartford Healthcare is expected to under-perform the Alger Spectra. In addition to that, Hartford Healthcare is 1.04 times more volatile than Alger Spectra. It trades about -0.02 of its total potential returns per unit of risk. Alger Spectra is currently generating about 0.37 per unit of volatility. If you would invest 2,764 in Alger Spectra on April 27, 2025 and sell it today you would earn a total of 809.00 from holding Alger Spectra or generate 29.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Healthcare vs. Alger Spectra
Performance |
| Timeline |
| The Hartford Healthcare |
| Alger Spectra |
Hartford Healthcare and Alger Spectra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Healthcare and Alger Spectra
The main advantage of trading using opposite Hartford Healthcare and Alger Spectra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Healthcare position performs unexpectedly, Alger Spectra 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 Alger Spectra will offset losses from the drop in Alger Spectra's long position.| Hartford Healthcare vs. The Hartford Healthcare | Hartford Healthcare vs. Hartford Healthcare Hls | Hartford Healthcare vs. The Hartford Global | Hartford Healthcare vs. Hartford Healthcare Hls |
| Alger Spectra vs. Dreyfus Short Intermediate | Alger Spectra vs. Chartwell Short Duration | Alger Spectra vs. Astor Longshort Fund | Alger Spectra vs. Fidelity Flex Servative |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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