Correlation Between BBX Capital and MFS Special
Can any of the company-specific risk be diversified away by investing in both BBX Capital and MFS Special 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 BBX Capital and MFS Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BBX Capital and MFS Special Value, you can compare the effects of market volatilities on BBX Capital and MFS Special 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 BBX Capital with a short position of MFS Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBX Capital and MFS Special.
Diversification Opportunities for BBX Capital and MFS Special
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between BBX and MFS is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding BBX Capital and MFS Special Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Special Value and BBX Capital 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 BBX Capital are associated (or correlated) with MFS Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Special Value has no effect on the direction of BBX Capital i.e., BBX Capital and MFS Special go up and down completely randomly.
Pair Corralation between BBX Capital and MFS Special
If you would invest 412.00 in MFS Special Value on August 28, 2024 and sell it today you would earn a total of 0.00 from holding MFS Special Value or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
BBX Capital vs. MFS Special Value
Performance |
| Timeline |
| BBX Capital |
| MFS Special Value |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BBX Capital and MFS Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBX Capital and MFS Special
The main advantage of trading using opposite BBX Capital and MFS Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBX Capital position performs unexpectedly, MFS Special 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 Special will offset losses from the drop in MFS Special's long position.| BBX Capital vs. Ameritrans Capital Corp | BBX Capital vs. Bounce Mobile Systems | BBX Capital vs. Elysee Development Corp | BBX Capital vs. AGF Management Limited |
| MFS Special vs. Brookfield Business Corp | MFS Special vs. Elysee Development Corp | MFS Special vs. DWS Municipal Income | MFS Special vs. Blackrock Munivest |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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