Correlation Between Mfs Intermediate and Invesco Senior
Can any of the company-specific risk be diversified away by investing in both Mfs Intermediate and Invesco Senior 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 Invesco Senior 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 Invesco Senior Income, you can compare the effects of market volatilities on Mfs Intermediate and Invesco Senior 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 Invesco Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Intermediate and Invesco Senior.
Diversification Opportunities for Mfs Intermediate and Invesco Senior
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mfs and Invesco is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Intermediate High and Invesco Senior Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Senior Income 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 Invesco Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Senior Income has no effect on the direction of Mfs Intermediate i.e., Mfs Intermediate and Invesco Senior go up and down completely randomly.
Pair Corralation between Mfs Intermediate and Invesco Senior
Considering the 90-day investment horizon Mfs Intermediate is expected to generate 1.99 times less return on investment than Invesco Senior. But when comparing it to its historical volatility, Mfs Intermediate High is 1.48 times less risky than Invesco Senior. It trades about 0.21 of its potential returns per unit of risk. Invesco Senior Income is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 384.00 in Invesco Senior Income on October 24, 2024 and sell it today you would earn a total of 18.00 from holding Invesco Senior Income or generate 4.69% 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. Invesco Senior Income
Performance |
| Timeline |
| Mfs Intermediate High |
| Invesco Senior Income |
Mfs Intermediate and Invesco Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Intermediate and Invesco Senior
The main advantage of trading using opposite Mfs Intermediate and Invesco Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Intermediate position performs unexpectedly, Invesco Senior 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 Invesco Senior will offset losses from the drop in Invesco Senior'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 |
| Invesco Senior vs. Nuveen Floating Rate | Invesco Senior vs. Blackrock Muni Intermediate | Invesco Senior vs. Eaton Vance Senior | Invesco Senior vs. BlackRock 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |