Correlation Between MFS High and Nuveen High
Can any of the company-specific risk be diversified away by investing in both MFS High and Nuveen 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 Nuveen 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 Nuveen High Income, you can compare the effects of market volatilities on MFS High and Nuveen 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 Nuveen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS High and Nuveen High.
Diversification Opportunities for MFS High and Nuveen High
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between MFS and Nuveen is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding MFS High Yield and Nuveen High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen 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 Nuveen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen High Income has no effect on the direction of MFS High i.e., MFS High and Nuveen High go up and down completely randomly.
Pair Corralation between MFS High and Nuveen High
If you would invest 307.00 in MFS High Yield on August 27, 2024 and sell it today you would earn a total of 48.00 from holding MFS High Yield or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
MFS High Yield vs. Nuveen High Income
Performance |
| Timeline |
| MFS High Yield |
| Nuveen High Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MFS High and Nuveen High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS High and Nuveen High
The main advantage of trading using opposite MFS High and Nuveen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS High position performs unexpectedly, Nuveen 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 Nuveen High will offset losses from the drop in Nuveen High's long position.| MFS High vs. PowerUp Acquisition Corp | MFS High vs. Aurora Innovation | MFS High vs. HUMANA INC | MFS High vs. Aquagold International |
| Nuveen High vs. MFS Investment Grade | Nuveen High vs. Eaton Vance National | Nuveen High vs. Invesco High Income | Nuveen 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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