Correlation Between Cref Inflation and Hartford Inflation
Can any of the company-specific risk be diversified away by investing in both Cref Inflation and Hartford 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 Cref Inflation and Hartford Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Inflation Linked Bond and The Hartford Inflation, you can compare the effects of market volatilities on Cref Inflation and Hartford 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 Cref Inflation with a short position of Hartford Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation and Hartford Inflation.
Diversification Opportunities for Cref Inflation and Hartford Inflation
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cref and Hartford is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond 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 Cref 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 Cref Inflation Linked Bond are associated (or correlated) with Hartford Inflation. 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 Cref Inflation i.e., Cref Inflation and Hartford Inflation go up and down completely randomly.
Pair Corralation between Cref Inflation and Hartford Inflation
Assuming the 90 days trading horizon Cref Inflation Linked Bond is expected to generate 0.81 times more return on investment than Hartford Inflation. However, Cref Inflation Linked Bond is 1.24 times less risky than Hartford Inflation. It trades about 0.1 of its potential returns per unit of risk. The Hartford Inflation is currently generating about 0.07 per unit of risk. If you would invest 8,010 in Cref Inflation Linked Bond on April 30, 2025 and sell it today you would earn a total of 908.00 from holding Cref Inflation Linked Bond or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Inflation Linked Bond vs. The Hartford Inflation
Performance |
| Timeline |
| Cref Inflation Linked |
| The Hartford Inflation |
Cref Inflation and Hartford Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Inflation and Hartford Inflation
The main advantage of trading using opposite Cref Inflation and Hartford Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation position performs unexpectedly, Hartford 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 Hartford Inflation will offset losses from the drop in Hartford Inflation's long position.| Cref Inflation vs. Invesco Global Health | Cref Inflation vs. Deutsche Health And | Cref Inflation vs. Schwab Health Care | Cref Inflation vs. Prudential Health Sciences |
| Hartford Inflation vs. Dreyfus Natural Resources | Hartford Inflation vs. Calvert Global Energy | Hartford Inflation vs. Thrivent Natural Resources | Hartford Inflation vs. Fidelity Advisor Energy |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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