Correlation Between Mfs Intermediate and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Mfs Intermediate and Credit Suisse 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 Mfs Intermediate and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Intermediate High and Credit Suisse Asset, you can compare the effects of market volatilities on Mfs Intermediate and Credit Suisse 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 Mfs Intermediate with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Intermediate and Credit Suisse.
Diversification Opportunities for Mfs Intermediate and Credit Suisse
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mfs and Credit is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Intermediate High and Credit Suisse Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Asset and Mfs 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 Mfs Intermediate High are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Asset has no effect on the direction of Mfs Intermediate i.e., Mfs Intermediate and Credit Suisse go up and down completely randomly.
Pair Corralation between Mfs Intermediate and Credit Suisse
Considering the 90-day investment horizon Mfs Intermediate High is expected to generate 0.7 times more return on investment than Credit Suisse. However, Mfs Intermediate High is 1.43 times less risky than Credit Suisse. It trades about 0.09 of its potential returns per unit of risk. Credit Suisse Asset is currently generating about 0.06 per unit of risk. If you would invest 138.00 in Mfs Intermediate High on August 31, 2024 and sell it today you would earn a total of 38.00 from holding Mfs Intermediate High or generate 27.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Intermediate High vs. Credit Suisse Asset
Performance |
| Timeline |
| Mfs Intermediate High |
| Credit Suisse Asset |
Mfs Intermediate and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Intermediate and Credit Suisse
The main advantage of trading using opposite Mfs Intermediate and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Intermediate position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Mfs Intermediate vs. Credit Suisse High | Mfs Intermediate vs. Western Asset High | Mfs Intermediate vs. Western Asset Global | Mfs Intermediate vs. Allspring Income Opportunities |
| Credit Suisse vs. BNY Mellon High | Credit Suisse vs. Mfs Intermediate High | Credit Suisse vs. Eaton Vance Risk | Credit Suisse vs. Nuveen Floating Rate |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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