Correlation Between The Hartford and Mfs Research
Can any of the company-specific risk be diversified away by investing in both The Hartford and Mfs Research 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 Mfs Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Midcap and Mfs Research Fund, you can compare the effects of market volatilities on The Hartford and Mfs Research 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 Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Mfs Research.
Diversification Opportunities for The Hartford and Mfs Research
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between The and Mfs is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Midcap and Mfs Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research 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 Midcap are associated (or correlated) with Mfs Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research has no effect on the direction of The Hartford i.e., The Hartford and Mfs Research go up and down completely randomly.
Pair Corralation between The Hartford and Mfs Research
Assuming the 90 days horizon The Hartford is expected to generate 2.31 times less return on investment than Mfs Research. In addition to that, The Hartford is 1.4 times more volatile than Mfs Research Fund. It trades about 0.03 of its total potential returns per unit of risk. Mfs Research Fund is currently generating about 0.1 per unit of volatility. If you would invest 4,562 in Mfs Research Fund on August 30, 2024 and sell it today you would earn a total of 2,197 from holding Mfs Research Fund or generate 48.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Midcap vs. Mfs Research Fund
Performance |
| Timeline |
| Hartford Midcap |
| Mfs Research |
The Hartford and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Mfs Research
The main advantage of trading using opposite The Hartford and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Mfs Research 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 Mfs Research will offset losses from the drop in Mfs Research's long position.| The Hartford vs. T Rowe Price | The Hartford vs. T Rowe Price | The Hartford vs. T Rowe Price | The Hartford vs. Midcap Fund Class |
| Mfs Research vs. Vanguard Total Stock | Mfs Research vs. Vanguard 500 Index | Mfs Research vs. Vanguard Total Stock | Mfs Research vs. Vanguard Total Stock |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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