Correlation Between Aam Select and Mfs Blended
Can any of the company-specific risk be diversified away by investing in both Aam Select and Mfs Blended 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 Aam Select and Mfs Blended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aam Select Income and Mfs Blended Research, you can compare the effects of market volatilities on Aam Select and Mfs Blended 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 Aam Select with a short position of Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam Select and Mfs Blended.
Diversification Opportunities for Aam Select and Mfs Blended
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aam and Mfs is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research and Aam Select 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 Aam Select Income are associated (or correlated) with Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of Aam Select i.e., Aam Select and Mfs Blended go up and down completely randomly.
Pair Corralation between Aam Select and Mfs Blended
Assuming the 90 days horizon Aam Select Income is expected to generate 0.36 times more return on investment than Mfs Blended. However, Aam Select Income is 2.79 times less risky than Mfs Blended. It trades about 0.09 of its potential returns per unit of risk. Mfs Blended Research is currently generating about 0.03 per unit of risk. If you would invest 893.00 in Aam Select Income on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Aam Select Income or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Aam Select Income vs. Mfs Blended Research
Performance |
| Timeline |
| Aam Select Income |
| Mfs Blended Research |
Aam Select and Mfs Blended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam Select and Mfs Blended
The main advantage of trading using opposite Aam Select and Mfs Blended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam Select position performs unexpectedly, Mfs Blended 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 Blended will offset losses from the drop in Mfs Blended's long position.| Aam Select vs. Aamhimco Short Duration | Aam Select vs. Aamhimco Short Duration | Aam Select vs. Aambahl Gaynor Income | Aam Select vs. Aam Select Income |
| Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |