Correlation Between The Hartford and Lifex Income
Can any of the company-specific risk be diversified away by investing in both The Hartford and Lifex Income 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 The Hartford and Lifex Income 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 Lifex Income, you can compare the effects of market volatilities on The Hartford and Lifex Income 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 The Hartford with a short position of Lifex Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Lifex Income.
Diversification Opportunities for The Hartford and Lifex Income
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between THE and Lifex is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Inflation and Lifex Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifex Income and The Hartford 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 Lifex Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifex Income has no effect on the direction of The Hartford i.e., The Hartford and Lifex Income go up and down completely randomly.
Pair Corralation between The Hartford and Lifex Income
If you would invest 2,001 in Lifex Income on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Lifex Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
The Hartford Inflation vs. Lifex Income
Performance |
| Timeline |
| The Hartford Inflation |
| Lifex Income |
The Hartford and Lifex Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Lifex Income
The main advantage of trading using opposite The Hartford and Lifex Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Lifex Income 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 Lifex Income will offset losses from the drop in Lifex Income's long position.| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
| Lifex Income vs. Guidepath Managed Futures | Lifex Income vs. Aqr Managed Futures | Lifex Income vs. Lord Abbett Inflation | Lifex Income vs. The Hartford Inflation |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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