Correlation Between The Hartford and Intermediate-term
Can any of the company-specific risk be diversified away by investing in both The Hartford and Intermediate-term 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 Intermediate-term 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 Intermediate Term Bond Fund, you can compare the effects of market volatilities on The Hartford and Intermediate-term 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 Intermediate-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Intermediate-term.
Diversification Opportunities for The Hartford and Intermediate-term
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between The and Intermediate-term is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare and Intermediate Term Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Term Bond 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 Intermediate-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Term Bond has no effect on the direction of The Hartford i.e., The Hartford and Intermediate-term go up and down completely randomly.
Pair Corralation between The Hartford and Intermediate-term
Assuming the 90 days horizon The Hartford Healthcare is expected to generate 3.64 times more return on investment than Intermediate-term. However, The Hartford is 3.64 times more volatile than Intermediate Term Bond Fund. It trades about 0.07 of its potential returns per unit of risk. Intermediate Term Bond Fund is currently generating about 0.23 per unit of risk. If you would invest 4,091 in The Hartford Healthcare on June 9, 2025 and sell it today you would earn a total of 155.00 from holding The Hartford Healthcare or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Healthcare vs. Intermediate Term Bond Fund
Performance |
| Timeline |
| The Hartford Healthcare |
| Intermediate Term Bond |
The Hartford and Intermediate-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Intermediate-term
The main advantage of trading using opposite The Hartford and Intermediate-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Intermediate-term 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 Intermediate-term will offset losses from the drop in Intermediate-term's long position.| The Hartford vs. Hartford Healthcare Hls | The Hartford vs. The Hartford Global | The Hartford vs. Hartford Healthcare Hls | The Hartford vs. Thrivent High Yield |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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