Correlation Between Marketfield Fund and Boston Partners
Can any of the company-specific risk be diversified away by investing in both Marketfield Fund and Boston Partners 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 Marketfield Fund and Boston Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marketfield Fund Marketfield and Boston Partners Longshort, you can compare the effects of market volatilities on Marketfield Fund and Boston Partners 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 Marketfield Fund with a short position of Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marketfield Fund and Boston Partners.
Diversification Opportunities for Marketfield Fund and Boston Partners
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Marketfield and Boston is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Marketfield Fund Marketfield and Boston Partners Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Longshort and Marketfield Fund 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 Marketfield Fund Marketfield are associated (or correlated) with Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Longshort has no effect on the direction of Marketfield Fund i.e., Marketfield Fund and Boston Partners go up and down completely randomly.
Pair Corralation between Marketfield Fund and Boston Partners
Assuming the 90 days horizon Marketfield Fund is expected to generate 1.08 times less return on investment than Boston Partners. In addition to that, Marketfield Fund is 1.23 times more volatile than Boston Partners Longshort. It trades about 0.1 of its total potential returns per unit of risk. Boston Partners Longshort is currently generating about 0.13 per unit of volatility. If you would invest 1,181 in Boston Partners Longshort on August 29, 2024 and sell it today you would earn a total of 52.00 from holding Boston Partners Longshort or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Marketfield Fund Marketfield vs. Boston Partners Longshort
Performance |
| Timeline |
| Marketfield Fund Mar |
| Boston Partners Longshort |
Marketfield Fund and Boston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marketfield Fund and Boston Partners
The main advantage of trading using opposite Marketfield Fund and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marketfield Fund position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' long position.| Marketfield Fund vs. Marketfield Fund Marketfield | Marketfield Fund vs. Prudential Jennison International | Marketfield Fund vs. Fidelity New Markets |
| Boston Partners vs. Boston Partners Longshort | Boston Partners vs. Blackrock Midcap Index | Boston Partners vs. The Arbitrage Fund | Boston Partners vs. Calamos Market Neutral |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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