Correlation Between The Hartford and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both The Hartford and Federated Strategic 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 Federated Strategic 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 Federated Strategic Value, you can compare the effects of market volatilities on The Hartford and Federated Strategic 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 Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Federated Strategic.
Diversification Opportunities for The Hartford and Federated Strategic
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between The and Federated is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare and Federated Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic Value 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 Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic Value has no effect on the direction of The Hartford i.e., The Hartford and Federated Strategic go up and down completely randomly.
Pair Corralation between The Hartford and Federated Strategic
Assuming the 90 days horizon The Hartford is expected to generate 1.99 times less return on investment than Federated Strategic. In addition to that, The Hartford is 1.44 times more volatile than Federated Strategic Value. It trades about 0.06 of its total potential returns per unit of risk. Federated Strategic Value is currently generating about 0.17 per unit of volatility. If you would invest 608.00 in Federated Strategic Value on May 30, 2025 and sell it today you would earn a total of 41.00 from holding Federated Strategic Value or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Healthcare vs. Federated Strategic Value
Performance |
| Timeline |
| The Hartford Healthcare |
| Federated Strategic Value |
The Hartford and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Federated Strategic
The main advantage of trading using opposite The Hartford and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Federated Strategic 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 Federated Strategic will offset losses from the drop in Federated Strategic's long position.| The Hartford vs. The Hartford Healthcare | The Hartford vs. Hartford Healthcare Hls | The Hartford vs. The Hartford Global | The Hartford vs. Hartford Healthcare Hls |
| Federated Strategic vs. Precious Metals And | Federated Strategic vs. International Investors Gold | Federated Strategic vs. Gold And Precious | Federated Strategic vs. Invesco Gold Special |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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