Correlation Between Western Asset and Hartford Floating
Can any of the company-specific risk be diversified away by investing in both Western Asset and Hartford Floating 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 Western Asset and Hartford Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Inflation and The Hartford Floating, you can compare the effects of market volatilities on Western Asset and Hartford Floating 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 Western Asset with a short position of Hartford Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Hartford Floating.
Diversification Opportunities for Western Asset and Hartford Floating
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Hartford is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Inflation and The Hartford Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Floating and Western Asset 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 Western Asset Inflation are associated (or correlated) with Hartford Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Floating has no effect on the direction of Western Asset i.e., Western Asset and Hartford Floating go up and down completely randomly.
Pair Corralation between Western Asset and Hartford Floating
Assuming the 90 days horizon Western Asset is expected to generate 3.27 times less return on investment than Hartford Floating. In addition to that, Western Asset is 2.23 times more volatile than The Hartford Floating. It trades about 0.03 of its total potential returns per unit of risk. The Hartford Floating is currently generating about 0.2 per unit of volatility. If you would invest 662.00 in The Hartford Floating on September 12, 2024 and sell it today you would earn a total of 128.00 from holding The Hartford Floating or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Inflation vs. The Hartford Floating
Performance |
| Timeline |
| Western Asset Inflation |
| Hartford Floating |
Western Asset and Hartford Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Hartford Floating
The main advantage of trading using opposite Western Asset and Hartford Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Hartford Floating 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 Floating will offset losses from the drop in Hartford Floating's long position.| Western Asset vs. Eventide Healthcare Life | Western Asset vs. Live Oak Health | Western Asset vs. Alger Health Sciences | Western Asset vs. Prudential Health Sciences |
| Hartford Floating vs. Ab Small Cap | Hartford Floating vs. Df Dent Small | Hartford Floating vs. Smallcap Growth Fund | Hartford Floating vs. Glg Intl Small |
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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