Correlation Between Deutsche Multi-asset and The Hartford
Can any of the company-specific risk be diversified away by investing in both Deutsche Multi-asset and The Hartford 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 Deutsche Multi-asset and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Multi Asset Moderate and The Hartford Inflation, you can compare the effects of market volatilities on Deutsche Multi-asset and The Hartford 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 Deutsche Multi-asset with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Multi-asset and The Hartford.
Diversification Opportunities for Deutsche Multi-asset and The Hartford
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Deutsche and The is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Multi Asset Moderate and The Hartford Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Inflation and Deutsche Multi-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 Deutsche Multi Asset Moderate are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Inflation has no effect on the direction of Deutsche Multi-asset i.e., Deutsche Multi-asset and The Hartford go up and down completely randomly.
Pair Corralation between Deutsche Multi-asset and The Hartford
Assuming the 90 days horizon Deutsche Multi Asset Moderate is expected to generate 2.3 times more return on investment than The Hartford. However, Deutsche Multi-asset is 2.3 times more volatile than The Hartford Inflation. It trades about 0.19 of its potential returns per unit of risk. The Hartford Inflation is currently generating about 0.23 per unit of risk. If you would invest 754.00 in Deutsche Multi Asset Moderate on June 6, 2025 and sell it today you would earn a total of 12.00 from holding Deutsche Multi Asset Moderate or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Multi Asset Moderate vs. The Hartford Inflation
Performance |
| Timeline |
| Deutsche Multi Asset |
| The Hartford Inflation |
Deutsche Multi-asset and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Multi-asset and The Hartford
The main advantage of trading using opposite Deutsche Multi-asset and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Multi-asset position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Deutsche Multi-asset vs. Financials Ultrasector Profund | Deutsche Multi-asset vs. 1919 Financial Services | Deutsche Multi-asset vs. Putnam Global Financials | Deutsche Multi-asset vs. Davis Financial Fund |
| The Hartford vs. Us Government Securities | The Hartford vs. Vanguard Intermediate Term Tax Exempt | The Hartford vs. Morningstar Municipal Bond | The Hartford vs. Alpine Ultra Short |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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