Correlation Between MFS High and MFS High
Can any of the company-specific risk be diversified away by investing in both MFS High and MFS High 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 High and MFS High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS High Yield and MFS High Income, you can compare the effects of market volatilities on MFS High and MFS High 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 High with a short position of MFS High. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS High and MFS High.
Diversification Opportunities for MFS High and MFS High
Poor diversification
The 3 months correlation between MFS and MFS is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding MFS High Yield and MFS High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS High Income and MFS High 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 High Yield are associated (or correlated) with MFS High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS High Income has no effect on the direction of MFS High i.e., MFS High and MFS High go up and down completely randomly.
Pair Corralation between MFS High and MFS High
Considering the 90-day investment horizon MFS High is expected to generate 2.04 times less return on investment than MFS High. But when comparing it to its historical volatility, MFS High Yield is 1.92 times less risky than MFS High. It trades about 0.03 of its potential returns per unit of risk. MFS High Income is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 367.00 in MFS High Income on November 2, 2024 and sell it today you would earn a total of 2.00 from holding MFS High Income or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS High Yield vs. MFS High Income
Performance |
| Timeline |
| MFS High Yield |
| MFS High Income |
MFS High and MFS High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS High and MFS High
The main advantage of trading using opposite MFS High and MFS High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS High position performs unexpectedly, MFS High 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 High will offset losses from the drop in MFS High's long position.| MFS High vs. MFS Investment Grade | MFS High vs. MFS Municipal Income | MFS High vs. DTF Tax Free | MFS High vs. MFS Government Markets |
| MFS High vs. MFS Investment Grade | MFS High vs. Eaton Vance National | MFS High vs. Blackrock Muniholdings Ny | MFS High vs. Nuveen California Select |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |