Correlation Between Mfs Intermediate and Sextant E
Can any of the company-specific risk be diversified away by investing in both Mfs Intermediate and Sextant E 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 Sextant E 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 Sextant E Fund, you can compare the effects of market volatilities on Mfs Intermediate and Sextant E 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 Sextant E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Intermediate and Sextant E.
Diversification Opportunities for Mfs Intermediate and Sextant E
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mfs and Sextant is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Intermediate High and Sextant E Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sextant E Fund 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 Sextant E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sextant E Fund has no effect on the direction of Mfs Intermediate i.e., Mfs Intermediate and Sextant E go up and down completely randomly.
Pair Corralation between Mfs Intermediate and Sextant E
Considering the 90-day investment horizon Mfs Intermediate High is expected to generate 1.8 times more return on investment than Sextant E. However, Mfs Intermediate is 1.8 times more volatile than Sextant E Fund. It trades about 0.06 of its potential returns per unit of risk. Sextant E Fund is currently generating about 0.1 per unit of risk. If you would invest 140.00 in Mfs Intermediate High on September 14, 2024 and sell it today you would earn a total of 36.00 from holding Mfs Intermediate High or generate 25.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mfs Intermediate High vs. Sextant E Fund
Performance |
| Timeline |
| Mfs Intermediate High |
| Sextant E Fund |
Mfs Intermediate and Sextant E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Intermediate and Sextant E
The main advantage of trading using opposite Mfs Intermediate and Sextant E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Intermediate position performs unexpectedly, Sextant E 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 Sextant E will offset losses from the drop in Sextant E'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 |
| Sextant E vs. Multisector Bond Sma | Sextant E vs. Alliancebernstein Bond | Sextant E vs. Ishares Municipal Bond | Sextant E vs. Ft 9331 Corporate |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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