Correlation Between Mfs Value and The Hartford
Can any of the company-specific risk be diversified away by investing in both Mfs Value 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 Value 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 Value Fund and The Hartford Dividend, you can compare the effects of market volatilities on Mfs Value 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 Value with a short position of The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and The Hartford.
Diversification Opportunities for Mfs Value and The Hartford
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and The is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value 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 Value 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 Value 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 Value i.e., Mfs Value and The Hartford go up and down completely randomly.
Pair Corralation between Mfs Value and The Hartford
Assuming the 90 days horizon Mfs Value is expected to generate 1.15 times less return on investment than The Hartford. But when comparing it to its historical volatility, Mfs Value Fund is 1.0 times less risky than The Hartford. It trades about 0.08 of its potential returns per unit of risk. The Hartford Dividend is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,844 in The Hartford Dividend on January 25, 2024 and sell it today you would earn a total of 429.00 from holding The Hartford Dividend or generate 15.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Mfs Value Fund vs. The Hartford Dividend
Performance |
Timeline |
Mfs Value Fund |
Hartford Dividend |
Mfs Value and The Hartford Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mfs Value and The Hartford
The main advantage of trading using opposite Mfs Value and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value 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 Value vs. Mfs Total Return | Mfs Value vs. Mfs International Value | Mfs Value vs. Mfs Growth Fund | Mfs Value vs. Mfs International New |
The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
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 Stocks Directory module to find actively traded stocks across global markets.
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