Correlation Between Hartford Inflation and Payden Us
Can any of the company-specific risk be diversified away by investing in both Hartford Inflation and Payden Us 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 Payden Us 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 Payden Government Fund, you can compare the effects of market volatilities on Hartford Inflation and Payden Us 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 Payden Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Inflation and Payden Us.
Diversification Opportunities for Hartford Inflation and Payden Us
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hartford and Payden is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Inflation and Payden Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Government 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 Payden Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Government has no effect on the direction of Hartford Inflation i.e., Hartford Inflation and Payden Us go up and down completely randomly.
Pair Corralation between Hartford Inflation and Payden Us
Assuming the 90 days horizon The Hartford Inflation is expected to generate 1.13 times more return on investment than Payden Us. However, Hartford Inflation is 1.13 times more volatile than Payden Government Fund. It trades about 0.22 of its potential returns per unit of risk. Payden Government Fund is currently generating about 0.17 per unit of risk. If you would invest 1,005 in The Hartford Inflation on May 27, 2025 and sell it today you would earn a total of 28.00 from holding The Hartford Inflation or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Inflation vs. Payden Government Fund
Performance |
| Timeline |
| The Hartford Inflation |
| Payden Government |
Hartford Inflation and Payden Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Inflation and Payden Us
The main advantage of trading using opposite Hartford Inflation and Payden Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Inflation position performs unexpectedly, Payden Us 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 Payden Us will offset losses from the drop in Payden Us' long position.| Hartford Inflation vs. Qs Large Cap | Hartford Inflation vs. Prudential Qma Large Cap | Hartford Inflation vs. Qs Large Cap | Hartford Inflation vs. Qs Large Cap |
| Payden Us vs. Payden Absolute Return | Payden Us vs. Payden Emerging Markets | Payden Us vs. Payden E Bond | Payden Us vs. Payden California Municipal |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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