Correlation Between Hartford Total and Hartford Dividend

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

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

Diversification Opportunities for Hartford Total and Hartford Dividend

0.4

Correlation Coefficient

Hartford Total  Hartford Dividend

Very weak diversification

The 3 months correlation between Hartford and Hartford is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Total and The Hartford Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Dividend and Hartford Total 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 Total are associated (or correlated) with Hartford Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Dividend has no effect on the direction of Hartford Total i.e., Hartford Total and Hartford Dividend go up and down completely randomly.

Pair Corralation between Hartford Total and Hartford Dividend

Assuming the 90 days horizon Hartford Total is expected to generate 10.88 times less return on investment than Hartford Dividend. But when comparing it to its historical volatility, The Hartford Total is 2.29 times less risky than Hartford Dividend. It trades about 0.04 of its potential returns per unit of risk. The Hartford Dividend is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  3,261  in The Hartford Dividend on May 1, 2025 and sell it today you would earn a total of  249.00  from holding The Hartford Dividend or generate 7.64% return on investment over 90 days.

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

The Hartford Total  vs.  The Hartford Dividend

Hartford Total

Risk-Adjusted Performance

Insignificant

Over the last 90 days The Hartford Total has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Hartford Total is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Hartford Dividend

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Dividend are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Hartford Dividend may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Hartford Total and Hartford Dividend

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

The idea behind The Hartford Total and The Hartford Dividend 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.