Correlation Between Dana Large and Hartford Inflation
Can any of the company-specific risk be diversified away by investing in both Dana Large and Hartford Inflation 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 Dana Large and Hartford Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Large Cap and The Hartford Inflation, you can compare the effects of market volatilities on Dana Large and Hartford Inflation 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 Dana Large with a short position of Hartford Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Hartford Inflation.
Diversification Opportunities for Dana Large and Hartford Inflation
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dana and Hartford is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and The Hartford Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Inflation and Dana 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 Dana Large Cap are associated (or correlated) with Hartford Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Inflation has no effect on the direction of Dana Large i.e., Dana Large and Hartford Inflation go up and down completely randomly.
Pair Corralation between Dana Large and Hartford Inflation
Assuming the 90 days horizon Dana Large Cap is expected to generate 4.08 times more return on investment than Hartford Inflation. However, Dana Large is 4.08 times more volatile than The Hartford Inflation. It trades about 0.1 of its potential returns per unit of risk. The Hartford Inflation is currently generating about 0.1 per unit of risk. If you would invest 2,454 in Dana Large Cap on September 13, 2024 and sell it today you would earn a total of 268.00 from holding Dana Large Cap or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Large Cap vs. The Hartford Inflation
Performance |
| Timeline |
| Dana Large Cap |
| The Hartford Inflation |
Dana Large and Hartford Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Large and Hartford Inflation
The main advantage of trading using opposite Dana Large and Hartford Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, Hartford Inflation 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 Inflation will offset losses from the drop in Hartford Inflation's long position.| Dana Large vs. Mid Cap Growth | Dana Large vs. Franklin Growth Opportunities | Dana Large vs. Needham Aggressive Growth | Dana Large vs. Tfa Alphagen Growth |
| Hartford Inflation vs. Delaware Healthcare Fund | Hartford Inflation vs. Health Biotchnology Portfolio | Hartford Inflation vs. Baillie Gifford Health | Hartford Inflation vs. Fidelity Advisor Health |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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