Correlation Between Citigroup and Mfs Value
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mfs Value 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 Citigroup and Mfs Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mfs Value Fund, you can compare the effects of market volatilities on Citigroup and Mfs Value 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 Citigroup with a short position of Mfs Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mfs Value.
Diversification Opportunities for Citigroup and Mfs Value
Very poor diversification
The 3 months correlation between Citigroup and Mfs is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mfs Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Value Fund and Citigroup 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 Citigroup are associated (or correlated) with Mfs Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Value Fund has no effect on the direction of Citigroup i.e., Citigroup and Mfs Value go up and down completely randomly.
Pair Corralation between Citigroup and Mfs Value
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.11 times more return on investment than Mfs Value. However, Citigroup is 3.11 times more volatile than Mfs Value Fund. It trades about 0.14 of its potential returns per unit of risk. Mfs Value Fund is currently generating about 0.11 per unit of risk. If you would invest 6,205 in Citigroup on August 29, 2024 and sell it today you would earn a total of 770.00 from holding Citigroup or generate 12.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Mfs Value Fund
Performance |
| Timeline |
| Citigroup |
| Mfs Value Fund |
Citigroup and Mfs Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mfs Value
The main advantage of trading using opposite Citigroup and Mfs Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mfs Value 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 Value will offset losses from the drop in Mfs Value's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Mfs Value vs. Mfs Growth Fund | Mfs Value vs. Prudential Total Return | Mfs Value vs. Mfs International Diversification | Mfs Value vs. Mfs Mid Cap |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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