Correlation Between Hartford Financial and Assicurazioni Generali
Can any of the company-specific risk be diversified away by investing in both Hartford Financial and Assicurazioni Generali 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 Financial and Assicurazioni Generali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Financial Services and Assicurazioni Generali SpA, you can compare the effects of market volatilities on Hartford Financial and Assicurazioni Generali 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 Financial with a short position of Assicurazioni Generali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Financial and Assicurazioni Generali.
Diversification Opportunities for Hartford Financial and Assicurazioni Generali
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and Assicurazioni is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Financial Services and Assicurazioni Generali SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assicurazioni Generali and Hartford Financial 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 Financial Services are associated (or correlated) with Assicurazioni Generali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assicurazioni Generali has no effect on the direction of Hartford Financial i.e., Hartford Financial and Assicurazioni Generali go up and down completely randomly.
Pair Corralation between Hartford Financial and Assicurazioni Generali
Considering the 90-day investment horizon Hartford Financial Services is expected to generate 0.72 times more return on investment than Assicurazioni Generali. However, Hartford Financial Services is 1.38 times less risky than Assicurazioni Generali. It trades about 0.08 of its potential returns per unit of risk. Assicurazioni Generali SpA is currently generating about 0.06 per unit of risk. If you would invest 6,246 in Hartford Financial Services on January 25, 2024 and sell it today you would earn a total of 3,740 from holding Hartford Financial Services or generate 59.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hartford Financial Services vs. Assicurazioni Generali SpA
Performance |
Timeline |
Hartford Financial |
Assicurazioni Generali |
Hartford Financial and Assicurazioni Generali Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hartford Financial and Assicurazioni Generali
The main advantage of trading using opposite Hartford Financial and Assicurazioni Generali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Financial position performs unexpectedly, Assicurazioni Generali 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 Assicurazioni Generali will offset losses from the drop in Assicurazioni Generali's long position.Hartford Financial vs. Assicurazioni Generali SpA | Hartford Financial vs. ageas SANV | Hartford Financial vs. AXA SA |
Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Zurich Insurance Group | Assicurazioni Generali vs. American International Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |