Correlation Between The Hartford and Cb Large
Can any of the company-specific risk be diversified away by investing in both The Hartford and Cb Large 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 Cb Large 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 Cb Large Cap, you can compare the effects of market volatilities on The Hartford and Cb Large 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 Cb Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Cb Large.
Diversification Opportunities for The Hartford and Cb Large
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between The and CBLLX is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare and Cb Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cb Large Cap 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 Cb Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cb Large Cap has no effect on the direction of The Hartford i.e., The Hartford and Cb Large go up and down completely randomly.
Pair Corralation between The Hartford and Cb Large
Assuming the 90 days horizon The Hartford Healthcare is expected to generate 2.39 times more return on investment than Cb Large. However, The Hartford is 2.39 times more volatile than Cb Large Cap. It trades about 0.33 of its potential returns per unit of risk. Cb Large Cap is currently generating about 0.08 per unit of risk. If you would invest 4,213 in The Hartford Healthcare on September 1, 2025 and sell it today you would earn a total of 848.00 from holding The Hartford Healthcare or generate 20.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 39.06% |
| Values | Daily Returns |
The Hartford Healthcare vs. Cb Large Cap
Performance |
| Timeline |
| The Hartford Healthcare |
| Cb Large Cap |
Risk-Adjusted Performance
Mild
Weak | Strong |
The Hartford and Cb Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Cb Large
The main advantage of trading using opposite The Hartford and Cb Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Cb Large 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 Cb Large will offset losses from the drop in Cb Large's long position.| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
| Cb Large vs. Ultramid Cap Profund Ultramid Cap | Cb Large vs. Small Cap Growth Profund | Cb Large vs. Mid Cap Value Profund | Cb Large vs. Small Cap Value Profund |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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