Correlation Between The Hartford and Six Circles
Can any of the company-specific risk be diversified away by investing in both The Hartford and Six Circles 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 Six Circles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Emerging and Six Circles Managed, you can compare the effects of market volatilities on The Hartford and Six Circles 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 Six Circles. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Six Circles.
Diversification Opportunities for The Hartford and Six Circles
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between The and Six is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Emerging and Six Circles Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Circles Managed 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 Emerging are associated (or correlated) with Six Circles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Circles Managed has no effect on the direction of The Hartford i.e., The Hartford and Six Circles go up and down completely randomly.
Pair Corralation between The Hartford and Six Circles
Assuming the 90 days horizon The Hartford is expected to generate 2.36 times less return on investment than Six Circles. But when comparing it to its historical volatility, The Hartford Emerging is 1.9 times less risky than Six Circles. It trades about 0.19 of its potential returns per unit of risk. Six Circles Managed is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,093 in Six Circles Managed on June 3, 2025 and sell it today you would earn a total of 195.00 from holding Six Circles Managed or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Emerging vs. Six Circles Managed
Performance |
| Timeline |
| Hartford Emerging |
| Six Circles Managed |
The Hartford and Six Circles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Six Circles
The main advantage of trading using opposite The Hartford and Six Circles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Six Circles 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 Six Circles will offset losses from the drop in Six Circles' long position.| The Hartford vs. Deutsche Health And | The Hartford vs. Eventide Healthcare Life | The Hartford vs. Invesco Global Health | The Hartford vs. Tekla Healthcare Investors |
| Six Circles vs. Fidelity Advisor Gold | Six Circles vs. Oppenheimer Gold Special | Six Circles vs. Franklin Gold Precious | Six Circles vs. Global Gold Fund |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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