Correlation Between The Hartford and Allianzgi Short

Can any of the company-specific risk be diversified away by investing in both The Hartford and Allianzgi Short 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 Allianzgi Short 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 Allianzgi Short Duration, you can compare the effects of market volatilities on The Hartford and Allianzgi Short 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 Allianzgi Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Allianzgi Short.

Diversification Opportunities for The Hartford and Allianzgi Short

0.79

Correlation Coefficient

The Hartford  Allianzgi Short

Poor diversification

The 3 months correlation between The and Allianzgi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Inflation and Allianzgi Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Short Duration 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 Allianzgi Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Short Duration has no effect on the direction of The Hartford i.e., The Hartford and Allianzgi Short go up and down completely randomly.

Pair Corralation between The Hartford and Allianzgi Short

Assuming the 90 days horizon The Hartford Inflation is expected to generate 1.89 times more return on investment than Allianzgi Short. However, The Hartford is 1.89 times more volatile than Allianzgi Short Duration. It trades about 0.24 of its potential returns per unit of risk. Allianzgi Short Duration is currently generating about 0.43 per unit of risk. If you would invest  998.00  in The Hartford Inflation on May 10, 2025 and sell it today you would earn a total of  29.00  from holding The Hartford Inflation or generate 2.91% 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.  Allianzgi Short Duration

The Hartford Inflation

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford Inflation are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, The Hartford is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Allianzgi Short Duration

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Short Duration are ranked lower than 34 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Allianzgi Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with The Hartford and Allianzgi Short

The main advantage of trading using opposite The Hartford and Allianzgi Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Allianzgi Short 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 Allianzgi Short will offset losses from the drop in Allianzgi Short's long position.

The idea behind The Hartford Inflation and Allianzgi Short Duration pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.