Correlation Between Mfs Growth and The Hartford
Can any of the company-specific risk be diversified away by investing in both Mfs Growth and The Hartford 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 Mfs Growth and The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Growth Fund and The Hartford Dividend, you can compare the effects of market volatilities on Mfs Growth and The Hartford 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 Mfs Growth with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Growth and The Hartford.
Diversification Opportunities for Mfs Growth and The Hartford
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and The is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Growth Fund and The Hartford Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Dividend and Mfs Growth 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 Mfs Growth Fund are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Dividend has no effect on the direction of Mfs Growth i.e., Mfs Growth and The Hartford go up and down completely randomly.
Pair Corralation between Mfs Growth and The Hartford
Assuming the 90 days horizon Mfs Growth Fund is expected to generate 1.63 times more return on investment than The Hartford. However, Mfs Growth is 1.63 times more volatile than The Hartford Dividend. It trades about 0.34 of its potential returns per unit of risk. The Hartford Dividend is currently generating about 0.26 per unit of risk. If you would invest 21,552 in Mfs Growth Fund on September 5, 2024 and sell it today you would earn a total of 1,486 from holding Mfs Growth Fund or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Growth Fund vs. The Hartford Dividend
Performance |
| Timeline |
| Mfs Growth Fund |
| Hartford Dividend |
Mfs Growth and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Growth and The Hartford
The main advantage of trading using opposite Mfs Growth and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Growth position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Mfs Growth vs. Mfs Prudent Investor | Mfs Growth vs. Mfs Prudent Investor | Mfs Growth vs. Mfs Prudent Investor | Mfs Growth vs. Mfs Prudent Investor |
| The Hartford vs. Invesco Developing Markets | The Hartford vs. Delaware Diversified Income | The Hartford vs. Mfs Growth Fund | The Hartford vs. The Hartford Balanced |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |