Correlation Between The Hartford and Cb Large

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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 Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy39.06%
ValuesDaily Returns

The Hartford Healthcare  vs.  Cb Large Cap

 Performance 
       Timeline  
The Hartford Healthcare 

Risk-Adjusted Performance

Strong

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Healthcare are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, The Hartford showed solid returns over the last few months and may actually be approaching a breakup point.
Cb Large Cap 

Risk-Adjusted Performance

Mild

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

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 idea behind The Hartford Healthcare and Cb Large Cap 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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