Correlation Between The Hartford and Catalyst Mlp

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Can any of the company-specific risk be diversified away by investing in both The Hartford and Catalyst Mlp 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 Catalyst Mlp 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 Catalyst Mlp Infrastructure, you can compare the effects of market volatilities on The Hartford and Catalyst Mlp 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 Catalyst Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Catalyst Mlp.

Diversification Opportunities for The Hartford and Catalyst Mlp

-0.83
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between The and Catalyst is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare and Catalyst Mlp Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Mlp Infrast 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 Catalyst Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Mlp Infrast has no effect on the direction of The Hartford i.e., The Hartford and Catalyst Mlp go up and down completely randomly.

Pair Corralation between The Hartford and Catalyst Mlp

Assuming the 90 days horizon The Hartford Healthcare is expected to generate 0.92 times more return on investment than Catalyst Mlp. However, The Hartford Healthcare is 1.09 times less risky than Catalyst Mlp. It trades about 0.29 of its potential returns per unit of risk. Catalyst Mlp Infrastructure is currently generating about -0.14 per unit of risk. If you would invest  4,181  in The Hartford Healthcare on August 22, 2025 and sell it today you would earn a total of  676.00  from holding The Hartford Healthcare or generate 16.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

The Hartford Healthcare  vs.  Catalyst Mlp Infrastructure

 Performance 
       Timeline  
The Hartford Healthcare 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Healthcare are ranked lower than 22 (%) 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.
Catalyst Mlp Infrast 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Catalyst Mlp Infrastructure has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

The Hartford and Catalyst Mlp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with The Hartford and Catalyst Mlp

The main advantage of trading using opposite The Hartford and Catalyst Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Catalyst Mlp 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 Catalyst Mlp will offset losses from the drop in Catalyst Mlp's long position.
The idea behind The Hartford Healthcare and Catalyst Mlp Infrastructure 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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