Correlation Between Hartford Inflation and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Hartford Inflation and Mainstay Balanced 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 Mainstay Balanced 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 Mainstay Balanced Fund, you can compare the effects of market volatilities on Hartford Inflation and Mainstay Balanced 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 Mainstay Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Inflation and Mainstay Balanced.
Diversification Opportunities for Hartford Inflation and Mainstay Balanced
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hartford and Mainstay is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Inflation and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced 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 Mainstay Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Hartford Inflation i.e., Hartford Inflation and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Hartford Inflation and Mainstay Balanced
Assuming the 90 days horizon Hartford Inflation is expected to generate 2.49 times less return on investment than Mainstay Balanced. But when comparing it to its historical volatility, The Hartford Inflation is 1.65 times less risky than Mainstay Balanced. It trades about 0.08 of its potential returns per unit of risk. Mainstay Balanced Fund is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,831 in Mainstay Balanced Fund on September 4, 2024 and sell it today you would earn a total of 402.00 from holding Mainstay Balanced Fund or generate 14.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Inflation vs. Mainstay Balanced Fund
Performance |
| Timeline |
| The Hartford Inflation |
| Mainstay Balanced |
Hartford Inflation and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Inflation and Mainstay Balanced
The main advantage of trading using opposite Hartford Inflation and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Inflation position performs unexpectedly, Mainstay Balanced 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 Mainstay Balanced will offset losses from the drop in Mainstay Balanced's long position.| Hartford Inflation vs. The Hartford Growth | Hartford Inflation vs. The Hartford Growth | Hartford Inflation vs. The Hartford Growth | Hartford Inflation vs. The Hartford Growth |
| Mainstay Balanced vs. Sarofim Equity | Mainstay Balanced vs. Ultra Short Fixed Income | Mainstay Balanced vs. Multimedia Portfolio Multimedia | Mainstay Balanced vs. The Hartford Equity |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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