Correlation Between ANT and MFS Active
Can any of the company-specific risk be diversified away by investing in both ANT and MFS Active 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 ANT and MFS Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and MFS Active Exchange, you can compare the effects of market volatilities on ANT and MFS Active 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 ANT with a short position of MFS Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and MFS Active.
Diversification Opportunities for ANT and MFS Active
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANT and MFS is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding ANT and MFS Active Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Active Exchange and ANT 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 ANT are associated (or correlated) with MFS Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Active Exchange has no effect on the direction of ANT i.e., ANT and MFS Active go up and down completely randomly.
Pair Corralation between ANT and MFS Active
Assuming the 90 days trading horizon ANT is expected to generate 126.32 times more return on investment than MFS Active. However, ANT is 126.32 times more volatile than MFS Active Exchange. It trades about 0.14 of its potential returns per unit of risk. MFS Active Exchange is currently generating about 0.09 per unit of risk. If you would invest 120.00 in ANT on October 24, 2024 and sell it today you would earn a total of 27.00 from holding ANT or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
ANT vs. MFS Active Exchange
Performance |
| Timeline |
| ANT |
| MFS Active Exchange |
ANT and MFS Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and MFS Active
The main advantage of trading using opposite ANT and MFS Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, MFS Active 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 Active will offset losses from the drop in MFS Active's long position.The idea behind ANT and MFS Active Exchange 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.| MFS Active vs. SSGA Active Trust | MFS Active vs. SPDR Nuveen Municipal | MFS Active vs. iShares Short Maturity | MFS Active vs. First Trust Flexible |
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.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |