Correlation Between A10 Network and Mfs Global
Can any of the company-specific risk be diversified away by investing in both A10 Network and Mfs Global 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 A10 Network and Mfs Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A10 Network and Mfs Global Bond, you can compare the effects of market volatilities on A10 Network and Mfs Global 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 A10 Network with a short position of Mfs Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of A10 Network and Mfs Global.
Diversification Opportunities for A10 Network and Mfs Global
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between A10 and Mfs is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding A10 Network and Mfs Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Global Bond and A10 Network 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 A10 Network are associated (or correlated) with Mfs Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Global Bond has no effect on the direction of A10 Network i.e., A10 Network and Mfs Global go up and down completely randomly.
Pair Corralation between A10 Network and Mfs Global
Given the investment horizon of 90 days A10 Network is expected to under-perform the Mfs Global. In addition to that, A10 Network is 6.04 times more volatile than Mfs Global Bond. It trades about -0.06 of its total potential returns per unit of risk. Mfs Global Bond is currently generating about -0.09 per unit of volatility. If you would invest 814.00 in Mfs Global Bond on December 6, 2024 and sell it today you would lose (5.00) from holding Mfs Global Bond or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
A10 Network vs. Mfs Global Bond
Performance |
| Timeline |
| A10 Network |
| Mfs Global Bond |
A10 Network and Mfs Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A10 Network and Mfs Global
The main advantage of trading using opposite A10 Network and Mfs Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A10 Network position performs unexpectedly, Mfs Global 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 Global will offset losses from the drop in Mfs Global's long position.| A10 Network vs. Evertec | ||
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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