Correlation Between Bbh Intermediate and Mfs Maryland
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Mfs Maryland 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 Bbh Intermediate and Mfs Maryland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Mfs Maryland Municipal, you can compare the effects of market volatilities on Bbh Intermediate and Mfs Maryland 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 Bbh Intermediate with a short position of Mfs Maryland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Mfs Maryland.
Diversification Opportunities for Bbh Intermediate and Mfs Maryland
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bbh and Mfs is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Mfs Maryland Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Maryland Municipal and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Mfs Maryland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Maryland Municipal has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Mfs Maryland go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Mfs Maryland
Assuming the 90 days horizon Bbh Intermediate Municipal is expected to generate 0.72 times more return on investment than Mfs Maryland. However, Bbh Intermediate Municipal is 1.39 times less risky than Mfs Maryland. It trades about 0.11 of its potential returns per unit of risk. Mfs Maryland Municipal is currently generating about 0.08 per unit of risk. If you would invest 967.00 in Bbh Intermediate Municipal on August 29, 2024 and sell it today you would earn a total of 68.00 from holding Bbh Intermediate Municipal or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Mfs Maryland Municipal
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Mfs Maryland Municipal |
Bbh Intermediate and Mfs Maryland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Mfs Maryland
The main advantage of trading using opposite Bbh Intermediate and Mfs Maryland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Mfs Maryland 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 Maryland will offset losses from the drop in Mfs Maryland's long position.| Bbh Intermediate vs. HUMANA INC | Bbh Intermediate vs. Aquagold International | Bbh Intermediate vs. Barloworld Ltd ADR | Bbh Intermediate vs. Morningstar Unconstrained Allocation |
| Mfs Maryland vs. Bbh Intermediate Municipal | Mfs Maryland vs. Nebraska Municipal Fund | Mfs Maryland vs. Multisector Bond Sma | Mfs Maryland vs. Financial Industries Fund |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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