Correlation Between Hartford International and Vanguard Lifestrategy

Can any of the company-specific risk be diversified away by investing in both Hartford International and Vanguard Lifestrategy 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 International and Vanguard Lifestrategy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Hartford International and Vanguard Lifestrategy Income, you can compare the effects of market volatilities on Hartford International and Vanguard Lifestrategy 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 International with a short position of Vanguard Lifestrategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford International and Vanguard Lifestrategy.

Diversification Opportunities for Hartford International and Vanguard Lifestrategy

0.77

Correlation Coefficient

Hartford International  Vanguard Lifestrategy

Poor diversification

The 3 months correlation between Hartford and Vanguard is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford International and Vanguard Lifestrategy Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Lifestrategy and Hartford International 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 International are associated (or correlated) with Vanguard Lifestrategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Lifestrategy has no effect on the direction of Hartford International i.e., Hartford International and Vanguard Lifestrategy go up and down completely randomly.

Pair Corralation between Hartford International and Vanguard Lifestrategy

Assuming the 90 days horizon The Hartford International is expected to generate 3.91 times more return on investment than Vanguard Lifestrategy. However, Hartford International is 3.91 times more volatile than Vanguard Lifestrategy Income. It trades about 0.11 of its potential returns per unit of risk. Vanguard Lifestrategy Income is currently generating about 0.14 per unit of risk. If you would invest  2,286  in The Hartford International on September 5, 2025 and sell it today you would earn a total of  127.00  from holding The Hartford International or generate 5.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

The Hartford International  vs.  Vanguard Lifestrategy Income

Hartford International

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in The Hartford International are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Hartford International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Vanguard Lifestrategy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Lifestrategy Income are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Vanguard Lifestrategy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hartford International and Vanguard Lifestrategy

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

The idea behind The Hartford International and Vanguard Lifestrategy Income 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.

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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.