Pair Correlation Between DOW and Hartford Total

This module allows you to analyze existing cross correlation between DOW and Hartford Total Return Bond. You can compare the effects of market volatilities on DOW and Hartford Total 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 DOW with a short position of Hartford Total. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Hartford Total.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 DOW  vs   Hartford Total Return Bond
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the Hartford Total. In addition to that, DOW is 4.47 times more volatile than Hartford Total Return Bond. It trades about -0.12 of its total potential returns per unit of risk. Hartford Total Return Bond is currently generating about -0.19 per unit of volatility. If you would invest  3,960  in Hartford Total Return Bond on January 24, 2018 and sell it today you would lose (29.23)  from holding Hartford Total Return Bond or give up 0.74% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Hartford Total
0.57

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy45.45%
ValuesDaily Returns

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Hartford Total Return Bond in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hartford Total Return and DOW 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 DOW are associated (or correlated) with Hartford Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Total Return has no effect on the direction of DOW i.e. DOW and Hartford Total go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns