Correlation Between StealthGas and The Hartford

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

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

Diversification Opportunities for StealthGas and The Hartford

0.19

Correlation Coefficient

StealthGas  The Hartford

Average diversification

The 3 months correlation between StealthGas and The is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding StealthGas and The Hartford Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Equity and StealthGas 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 StealthGas 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 Equity has no effect on the direction of StealthGas i.e., StealthGas and The Hartford go up and down completely randomly.

Pair Corralation between StealthGas and The Hartford

Given the investment horizon of 90 days StealthGas is expected to under-perform the The Hartford. In addition to that, StealthGas is 3.15 times more volatile than The Hartford Equity. It trades about -0.17 of its total potential returns per unit of risk. The Hartford Equity is currently generating about 0.1 per unit of volatility. If you would invest  2,247  in The Hartford Equity on August 15, 2024 and sell it today you would earn a total of  32.00  from holding The Hartford Equity or generate 1.42% return on investment over 90 days.

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

StealthGas  vs.  The Hartford Equity

StealthGas

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in StealthGas are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, StealthGas is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Hartford Equity

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Equity are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, The Hartford may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with StealthGas and The Hartford

The main advantage of trading using opposite StealthGas and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StealthGas 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 StealthGas and The Hartford Equity 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.

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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 Stocks Directory module to find actively traded stocks across global markets.