Correlation Between Mfs Growth and Hartford Equity
Can any of the company-specific risk be diversified away by investing in both Mfs Growth and Hartford Equity 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 Hartford Equity 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 Equity, you can compare the effects of market volatilities on Mfs Growth and Hartford Equity 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 Hartford Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Growth and Hartford Equity.
Diversification Opportunities for Mfs Growth and Hartford Equity
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mfs and Hartford is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Growth Fund and The Hartford Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Equity 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 Hartford Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Equity has no effect on the direction of Mfs Growth i.e., Mfs Growth and Hartford Equity go up and down completely randomly.
Pair Corralation between Mfs Growth and Hartford Equity
Assuming the 90 days horizon Mfs Growth Fund is expected to generate 1.7 times more return on investment than Hartford Equity. However, Mfs Growth is 1.7 times more volatile than The Hartford Equity. It trades about 0.13 of its potential returns per unit of risk. The Hartford Equity is currently generating about -0.2 per unit of risk. If you would invest 22,743 in Mfs Growth Fund on September 12, 2024 and sell it today you would earn a total of 518.00 from holding Mfs Growth Fund or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mfs Growth Fund vs. The Hartford Equity
Performance |
| Timeline |
| Mfs Growth Fund |
| Hartford Equity |
Mfs Growth and Hartford Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Growth and Hartford Equity
The main advantage of trading using opposite Mfs Growth and Hartford Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Growth position performs unexpectedly, Hartford Equity 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 Hartford Equity will offset losses from the drop in Hartford Equity's long position.| Mfs Growth vs. Mfs Value Fund | Mfs Growth vs. Mfs International Value | Mfs Growth vs. Mfs Mid Cap | Mfs Growth vs. Mfs International Diversification |
| Hartford Equity vs. Delaware Investments Ultrashort | Hartford Equity vs. Dreyfus Short Intermediate | Hartford Equity vs. Alpine Ultra Short | Hartford Equity vs. Lord Abbett Short |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |