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

0.47

Correlation Coefficient

Marketfield Fund  Boston Partners

Very weak diversification

The 3 months correlation between Marketfield and Boston is 0.47. 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 Marketfield is expected to generate 1.19 times more return on investment than Boston Partners. However, Marketfield Fund is 1.19 times more volatile than Boston Partners Longshort. It trades about 0.22 of its potential returns per unit of risk. Boston Partners Longshort is currently generating about 0.22 per unit of risk. If you would invest  2,296  in Marketfield Fund Marketfield on October 20, 2024 and sell it today you would earn a total of  71.00  from holding Marketfield Fund Marketfield or generate 3.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.0%
Values	Daily Returns

Marketfield Fund Marketfield  vs.  Boston Partners Longshort

Marketfield Fund Mar

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Marketfield Fund Marketfield are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Marketfield Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Boston Partners Longshort

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Boston Partners Longshort has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

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.

The idea behind Marketfield Fund Marketfield and Boston Partners Longshort pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.