Correlation Between Hartford Inflation and American Mutual
Can any of the company-specific risk be diversified away by investing in both Hartford Inflation and American Mutual 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 Inflation and American Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Inflation and American Mutual Fund, you can compare the effects of market volatilities on Hartford Inflation and American Mutual 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 Inflation with a short position of American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Inflation and American Mutual.
Diversification Opportunities for Hartford Inflation and American Mutual
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hartford and American is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Inflation and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual and Hartford Inflation 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 Inflation are associated (or correlated) with American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual has no effect on the direction of Hartford Inflation i.e., Hartford Inflation and American Mutual go up and down completely randomly.
Pair Corralation between Hartford Inflation and American Mutual
Assuming the 90 days horizon The Hartford Inflation is expected to generate 0.32 times more return on investment than American Mutual. However, The Hartford Inflation is 3.09 times less risky than American Mutual. It trades about -0.12 of its potential returns per unit of risk. American Mutual Fund is currently generating about -0.05 per unit of risk. If you would invest 1,011 in The Hartford Inflation on September 13, 2024 and sell it today you would lose (9.00) from holding The Hartford Inflation or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Inflation vs. American Mutual Fund
Performance |
| Timeline |
| The Hartford Inflation |
| American Mutual |
Hartford Inflation and American Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Inflation and American Mutual
The main advantage of trading using opposite Hartford Inflation and American Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Inflation position performs unexpectedly, American Mutual 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 American Mutual will offset losses from the drop in American Mutual's long position.| Hartford Inflation vs. Delaware Healthcare Fund | Hartford Inflation vs. Health Biotchnology Portfolio | Hartford Inflation vs. Baillie Gifford Health | Hartford Inflation vs. Fidelity Advisor Health |
| American Mutual vs. New Perspective Fund | American Mutual vs. New World Fund | American Mutual vs. Washington Mutual Investors | American Mutual vs. Aquagold International |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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