Correlation Between Hartford Moderate and Inflation Protected
Can any of the company-specific risk be diversified away by investing in both Hartford Moderate and Inflation Protected 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 Moderate and Inflation Protected into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Moderate Allocation and Inflation Protected Bond Fund, you can compare the effects of market volatilities on Hartford Moderate and Inflation Protected 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 Moderate with a short position of Inflation Protected. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Moderate and Inflation Protected.
Diversification Opportunities for Hartford Moderate and Inflation Protected
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and Inflation is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Moderate Allocation and Inflation Protected Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Protected and Hartford Moderate 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 Hartford Moderate Allocation are associated (or correlated) with Inflation Protected. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Protected has no effect on the direction of Hartford Moderate i.e., Hartford Moderate and Inflation Protected go up and down completely randomly.
Pair Corralation between Hartford Moderate and Inflation Protected
Assuming the 90 days horizon Hartford Moderate Allocation is expected to generate 1.2 times more return on investment than Inflation Protected. However, Hartford Moderate is 1.2 times more volatile than Inflation Protected Bond Fund. It trades about 0.18 of its potential returns per unit of risk. Inflation Protected Bond Fund is currently generating about 0.08 per unit of risk. If you would invest 1,285 in Hartford Moderate Allocation on November 4, 2024 and sell it today you would earn a total of 24.00 from holding Hartford Moderate Allocation or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Moderate Allocation vs. Inflation Protected Bond Fund
Performance |
| Timeline |
| Hartford Moderate |
| Inflation Protected |
Hartford Moderate and Inflation Protected Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Moderate and Inflation Protected
The main advantage of trading using opposite Hartford Moderate and Inflation Protected positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Moderate position performs unexpectedly, Inflation Protected 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 Inflation Protected will offset losses from the drop in Inflation Protected's long position.| Hartford Moderate vs. Angel Oak Multi Strategy | Hartford Moderate vs. Growth Strategy Fund | Hartford Moderate vs. Barings Emerging Markets | Hartford Moderate vs. Vy Jpmorgan Emerging |
| Inflation Protected vs. Nasdaq 100 2x Strategy | Inflation Protected vs. Western Assets Emerging | Inflation Protected vs. Investec Emerging Markets | Inflation Protected vs. Barings Emerging Markets |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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