Correlation Between MFS High and Fiera Capital
Can any of the company-specific risk be diversified away by investing in both MFS High and Fiera Capital 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 Fiera Capital 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 Fiera Capital, you can compare the effects of market volatilities on MFS High and Fiera Capital 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 Fiera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS High and Fiera Capital.
Diversification Opportunities for MFS High and Fiera Capital
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MFS and Fiera is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding MFS High Yield and Fiera Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital 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 Fiera Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiera Capital has no effect on the direction of MFS High i.e., MFS High and Fiera Capital go up and down completely randomly.
Pair Corralation between MFS High and Fiera Capital
Considering the 90-day investment horizon MFS High is expected to generate 5.86 times less return on investment than Fiera Capital. But when comparing it to its historical volatility, MFS High Yield is 8.75 times less risky than Fiera Capital. It trades about 0.08 of its potential returns per unit of risk. Fiera Capital is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 517.00 in Fiera Capital on September 1, 2024 and sell it today you would earn a total of 181.00 from holding Fiera Capital or generate 35.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.82% |
| Values | Daily Returns |
MFS High Yield vs. Fiera Capital
Performance |
| Timeline |
| MFS High Yield |
| Fiera Capital |
MFS High and Fiera Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS High and Fiera Capital
The main advantage of trading using opposite MFS High and Fiera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS High position performs unexpectedly, Fiera Capital 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 Fiera Capital will offset losses from the drop in Fiera Capital'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 |
| Fiera Capital vs. AGF Management Limited | Fiera Capital vs. Azimut Holding SpA | Fiera Capital vs. Ameritrans Capital Corp | Fiera Capital vs. Elysee Development Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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