Correlation Between The Hartford and Lincoln Inflation
Can any of the company-specific risk be diversified away by investing in both The Hartford and Lincoln Inflation 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 Lincoln Inflation 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 Lincoln Inflation Plus, you can compare the effects of market volatilities on The Hartford and Lincoln Inflation 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 Lincoln Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Lincoln Inflation.
Diversification Opportunities for The Hartford and Lincoln Inflation
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between The and Lincoln is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Inflation and Lincoln Inflation Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lincoln Inflation Plus 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 Lincoln Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lincoln Inflation Plus has no effect on the direction of The Hartford i.e., The Hartford and Lincoln Inflation go up and down completely randomly.
Pair Corralation between The Hartford and Lincoln Inflation
Assuming the 90 days horizon The Hartford is expected to generate 4.69 times less return on investment than Lincoln Inflation. But when comparing it to its historical volatility, The Hartford Inflation is 2.95 times less risky than Lincoln Inflation. It trades about 0.16 of its potential returns per unit of risk. Lincoln Inflation Plus is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 983.00 in Lincoln Inflation Plus on August 14, 2025 and sell it today you would earn a total of 74.00 from holding Lincoln Inflation Plus or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Inflation vs. Lincoln Inflation Plus
Performance |
| Timeline |
| The Hartford Inflation |
| Lincoln Inflation Plus |
The Hartford and Lincoln Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Lincoln Inflation
The main advantage of trading using opposite The Hartford and Lincoln Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Lincoln Inflation 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 Lincoln Inflation will offset losses from the drop in Lincoln Inflation's long position.| The Hartford vs. Precious Metals And | The Hartford vs. Gamco Global Gold | The Hartford vs. Global Gold Fund | The Hartford vs. World Precious Minerals |
| Lincoln Inflation vs. Gmo Global Equity | Lincoln Inflation vs. Ms Global Fixed | Lincoln Inflation vs. Ab Global Risk | Lincoln Inflation vs. Kopernik Global All Cap |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |