Correlation Between American Mutual and Mfs Blended
Can any of the company-specific risk be diversified away by investing in both American Mutual and Mfs Blended 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 American Mutual and Mfs Blended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Mutual Fund and Mfs Blended Research, you can compare the effects of market volatilities on American Mutual and Mfs Blended 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 American Mutual with a short position of Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Mutual and Mfs Blended.
Diversification Opportunities for American Mutual and Mfs Blended
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between American and Mfs is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research and American Mutual 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 American Mutual Fund are associated (or correlated) with Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of American Mutual i.e., American Mutual and Mfs Blended go up and down completely randomly.
Pair Corralation between American Mutual and Mfs Blended
Assuming the 90 days horizon American Mutual Fund is expected to under-perform the Mfs Blended. But the mutual fund apears to be less risky and, when comparing its historical volatility, American Mutual Fund is 1.29 times less risky than Mfs Blended. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Mfs Blended Research is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,732 in Mfs Blended Research on September 13, 2024 and sell it today you would lose (12.00) from holding Mfs Blended Research or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.67% |
| Values | Daily Returns |
American Mutual Fund vs. Mfs Blended Research
Performance |
| Timeline |
| American Mutual |
| Mfs Blended Research |
American Mutual and Mfs Blended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Mutual and Mfs Blended
The main advantage of trading using opposite American Mutual and Mfs Blended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Mutual position performs unexpectedly, Mfs Blended 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 Blended will offset losses from the drop in Mfs Blended's long position.| American Mutual vs. Blrc Sgy Mnp | American Mutual vs. T Rowe Price | American Mutual vs. Multisector Bond Sma | American Mutual vs. Artisan High Income |
| Mfs Blended vs. Doubleline Yield Opportunities | Mfs Blended vs. Multisector Bond Sma | Mfs Blended vs. Alliancebernstein Bond | Mfs Blended vs. Bbh 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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