Correlation Between Calvert Large and The Hartford

Can any of the company-specific risk be diversified away by investing in both Calvert Large and The Hartford 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 Calvert Large and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calvert Large Cap and The Hartford Balanced, you can compare the effects of market volatilities on Calvert Large and The Hartford 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 Calvert Large with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Large and The Hartford.

Diversification Opportunities for Calvert Large and The Hartford

0.96

Correlation Coefficient

Calvert Large  The Hartford

Almost no diversification

The 3 months correlation between Calvert and The is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap and The Hartford Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Balanced and Calvert Large 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 Calvert Large Cap are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Balanced has no effect on the direction of Calvert Large i.e., Calvert Large and The Hartford go up and down completely randomly.

Pair Corralation between Calvert Large and The Hartford

Assuming the 90 days horizon Calvert Large Cap is expected to generate 2.03 times more return on investment than The Hartford. However, Calvert Large is 2.03 times more volatile than The Hartford Balanced. It trades about 0.3 of its potential returns per unit of risk. The Hartford Balanced is currently generating about 0.2 per unit of risk. If you would invest  4,773  in Calvert Large Cap on April 30, 2025 and sell it today you would earn a total of  715.00  from holding Calvert Large Cap or generate 14.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Calvert Large Cap  vs.  The Hartford Balanced

Calvert Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Calvert Large showed solid returns over the last few months and may actually be approaching a breakup point.

Hartford Balanced

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Balanced are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, The Hartford is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calvert Large and The Hartford

The main advantage of trading using opposite Calvert Large and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Large position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.

The idea behind Calvert Large Cap and The Hartford Balanced pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.