Correlation Between The Hartford and Aberdeen Gbl
Can any of the company-specific risk be diversified away by investing in both The Hartford and Aberdeen Gbl 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 Aberdeen Gbl 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 Aberdeen Gbl Eq, you can compare the effects of market volatilities on The Hartford and Aberdeen Gbl 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 Aberdeen Gbl. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Aberdeen Gbl.
Diversification Opportunities for The Hartford and Aberdeen Gbl
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between The and Aberdeen is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare and Aberdeen Gbl Eq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Gbl Eq 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 Aberdeen Gbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Gbl Eq has no effect on the direction of The Hartford i.e., The Hartford and Aberdeen Gbl go up and down completely randomly.
Pair Corralation between The Hartford and Aberdeen Gbl
Assuming the 90 days horizon The Hartford is expected to generate 2.6 times less return on investment than Aberdeen Gbl. In addition to that, The Hartford is 1.22 times more volatile than Aberdeen Gbl Eq. It trades about 0.05 of its total potential returns per unit of risk. Aberdeen Gbl Eq is currently generating about 0.15 per unit of volatility. If you would invest 1,289 in Aberdeen Gbl Eq on June 6, 2025 and sell it today you would earn a total of 95.00 from holding Aberdeen Gbl Eq or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
The Hartford Healthcare vs. Aberdeen Gbl Eq
Performance |
| Timeline |
| The Hartford Healthcare |
| Aberdeen Gbl Eq |
The Hartford and Aberdeen Gbl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Aberdeen Gbl
The main advantage of trading using opposite The Hartford and Aberdeen Gbl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Aberdeen Gbl 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 Aberdeen Gbl will offset losses from the drop in Aberdeen Gbl's long position.| The Hartford vs. The Hartford Healthcare | The Hartford vs. Hartford Healthcare Hls | The Hartford vs. The Hartford Global | The Hartford vs. The Hartford Healthcare |
| Aberdeen Gbl vs. Fidelity Advisor Technology | Aberdeen Gbl vs. Janus Global Technology | Aberdeen Gbl vs. Blackrock Science Technology | Aberdeen Gbl vs. Vanguard Information Technology |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges |