Correlation Between Hartford Global and Icon Utilities

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

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

Diversification Opportunities for Hartford Global and Icon Utilities

0.33

Correlation Coefficient

Hartford Global  Icon Utilities

Weak diversification

The 3 months correlation between Hartford and Icon is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Global and Icon Utilities And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Utilities And and Hartford Global 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 Global are associated (or correlated) with Icon Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Utilities And has no effect on the direction of Hartford Global i.e., Hartford Global and Icon Utilities go up and down completely randomly.

Pair Corralation between Hartford Global and Icon Utilities

Assuming the 90 days horizon The Hartford Global is expected to generate 0.45 times more return on investment than Icon Utilities. However, The Hartford Global is 2.2 times less risky than Icon Utilities. It trades about 0.21 of its potential returns per unit of risk. Icon Utilities And is currently generating about 0.07 per unit of risk. If you would invest  886.00  in The Hartford Global on May 8, 2025 and sell it today you would earn a total of  43.00  from holding The Hartford Global or generate 4.85% return on investment over 90 days.

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

The Hartford Global  vs.  Icon Utilities And

Hartford Global

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Global are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Hartford Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Icon Utilities And

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Icon Utilities And are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Icon Utilities is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hartford Global and Icon Utilities

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

The idea behind The Hartford Global and Icon Utilities And 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.