Correlation Between Ab Impact and Mfs International
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Mfs International 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 Ab Impact and Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Mfs International Large, you can compare the effects of market volatilities on Ab Impact and Mfs International 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 Ab Impact with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Mfs International.
Diversification Opportunities for Ab Impact and Mfs International
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ABIMX and Mfs is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Mfs International Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International Large and Ab Impact 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 Ab Impact Municipal are associated (or correlated) with Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International Large has no effect on the direction of Ab Impact i.e., Ab Impact and Mfs International go up and down completely randomly.
Pair Corralation between Ab Impact and Mfs International
Assuming the 90 days horizon Ab Impact Municipal is expected to generate 0.34 times more return on investment than Mfs International. However, Ab Impact Municipal is 2.93 times less risky than Mfs International. It trades about 0.15 of its potential returns per unit of risk. Mfs International Large is currently generating about 0.02 per unit of risk. If you would invest 947.00 in Ab Impact Municipal on August 31, 2024 and sell it today you would earn a total of 52.00 from holding Ab Impact Municipal or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Ab Impact Municipal vs. Mfs International Large
Performance |
| Timeline |
| Ab Impact Municipal |
| Mfs International Large |
Ab Impact and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Mfs International
The main advantage of trading using opposite Ab Impact and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Mfs International 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 Mfs International will offset losses from the drop in Mfs International's long position.| Ab Impact vs. Enhanced Large Pany | Ab Impact vs. Jhancock Disciplined Value | Ab Impact vs. Tax Managed Large Cap | Ab Impact vs. Touchstone Large Cap |
| Mfs International vs. Maryland Tax Free Bond | Mfs International vs. Ab Impact Municipal | Mfs International vs. Transamerica Intermediate Muni | Mfs International vs. Jpmorgan Short Intermediate Municipal |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |