Correlation Between Boston Trust and Harbor Large
Can any of the company-specific risk be diversified away by investing in both Boston Trust and Harbor Large 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 Boston Trust and Harbor Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Trust Midcap and Harbor Large Cap, you can compare the effects of market volatilities on Boston Trust and Harbor Large 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 Boston Trust with a short position of Harbor Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Trust and Harbor Large.
Diversification Opportunities for Boston Trust and Harbor Large
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Boston and Harbor is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Boston Trust Midcap and Harbor Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Large Cap and Boston Trust 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 Boston Trust Midcap are associated (or correlated) with Harbor Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Large Cap has no effect on the direction of Boston Trust i.e., Boston Trust and Harbor Large go up and down completely randomly.
Pair Corralation between Boston Trust and Harbor Large
Assuming the 90 days horizon Boston Trust Midcap is expected to generate 0.98 times more return on investment than Harbor Large. However, Boston Trust Midcap is 1.03 times less risky than Harbor Large. It trades about 0.14 of its potential returns per unit of risk. Harbor Large Cap is currently generating about 0.1 per unit of risk. If you would invest 2,366 in Boston Trust Midcap on September 1, 2024 and sell it today you would earn a total of 333.00 from holding Boston Trust Midcap or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Trust Midcap vs. Harbor Large Cap
Performance |
| Timeline |
| Boston Trust Midcap |
| Harbor Large Cap |
Boston Trust and Harbor Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Trust and Harbor Large
The main advantage of trading using opposite Boston Trust and Harbor Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Trust position performs unexpectedly, Harbor Large 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 Harbor Large will offset losses from the drop in Harbor Large's long position.| Boston Trust vs. Boston Trust Asset | Boston Trust vs. Virtus Kar Mid Cap | Boston Trust vs. Virtus Kar Mid Cap | Boston Trust vs. Boston Trust Small |
| Harbor Large vs. Harbor Mid Cap | Harbor Large vs. Harbor Capital Appreciation | Harbor Large vs. Miller Opportunity Trust | Harbor Large vs. Harbor Large Cap |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |