Correlation Between Hartford Healthcare and Alger Midcap
Can any of the company-specific risk be diversified away by investing in both Hartford Healthcare and Alger Midcap 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 Hartford Healthcare and Alger Midcap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Healthcare Hls and Alger Midcap Growth, you can compare the effects of market volatilities on Hartford Healthcare and Alger Midcap 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 Hartford Healthcare with a short position of Alger Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Healthcare and Alger Midcap.
Diversification Opportunities for Hartford Healthcare and Alger Midcap
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hartford and Alger is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Healthcare Hls and Alger Midcap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Midcap Growth and Hartford Healthcare 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 Hartford Healthcare Hls are associated (or correlated) with Alger Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Midcap Growth has no effect on the direction of Hartford Healthcare i.e., Hartford Healthcare and Alger Midcap go up and down completely randomly.
Pair Corralation between Hartford Healthcare and Alger Midcap
Assuming the 90 days horizon Hartford Healthcare is expected to generate 3.71 times less return on investment than Alger Midcap. But when comparing it to its historical volatility, Hartford Healthcare Hls is 1.24 times less risky than Alger Midcap. It trades about 0.14 of its potential returns per unit of risk. Alger Midcap Growth is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 888.00 in Alger Midcap Growth on March 27, 2025 and sell it today you would earn a total of 60.00 from holding Alger Midcap Growth or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hartford Healthcare Hls vs. Alger Midcap Growth
Performance |
| Timeline |
| Hartford Healthcare Hls |
| Alger Midcap Growth |
Hartford Healthcare and Alger Midcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Healthcare and Alger Midcap
The main advantage of trading using opposite Hartford Healthcare and Alger Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Healthcare position performs unexpectedly, Alger Midcap 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 Alger Midcap will offset losses from the drop in Alger Midcap's long position.| Hartford Healthcare vs. Mesirow Financial Small | Hartford Healthcare vs. Vanguard Financials Index | Hartford Healthcare vs. Transamerica Financial Life | Hartford Healthcare vs. Fidelity Advisor Financial |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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