Correlation Between Mfs Series and Ishares Municipal
Can any of the company-specific risk be diversified away by investing in both Mfs Series and Ishares Municipal 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 Series and Ishares Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Series Trust and Ishares Municipal Bond, you can compare the effects of market volatilities on Mfs Series and Ishares Municipal 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 Series with a short position of Ishares Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Series and Ishares Municipal.
Diversification Opportunities for Mfs Series and Ishares Municipal
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and IShares is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Series Trust and Ishares Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ishares Municipal Bond and Mfs Series 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 Series Trust are associated (or correlated) with Ishares Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ishares Municipal Bond has no effect on the direction of Mfs Series i.e., Mfs Series and Ishares Municipal go up and down completely randomly.
Pair Corralation between Mfs Series and Ishares Municipal
Assuming the 90 days horizon Mfs Series is expected to generate 21.0 times less return on investment than Ishares Municipal. In addition to that, Mfs Series is 1.58 times more volatile than Ishares Municipal Bond. It trades about 0.0 of its total potential returns per unit of risk. Ishares Municipal Bond is currently generating about 0.06 per unit of volatility. If you would invest 1,040 in Ishares Municipal Bond on September 3, 2024 and sell it today you would earn a total of 77.00 from holding Ishares Municipal Bond or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Mfs Series Trust vs. Ishares Municipal Bond
Performance |
| Timeline |
| Mfs Series Trust |
| Ishares Municipal Bond |
Mfs Series and Ishares Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Series and Ishares Municipal
The main advantage of trading using opposite Mfs Series and Ishares Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Series position performs unexpectedly, Ishares Municipal 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 Ishares Municipal will offset losses from the drop in Ishares Municipal's long position.| Mfs Series vs. Goldman Sachs Short | Mfs Series vs. Federated Short Term Income | Mfs Series vs. Locorr Longshort Modities | Mfs Series vs. Angel Oak Ultrashort |
| Ishares Municipal vs. T Rowe Price | Ishares Municipal vs. John Hancock Funds | Ishares Municipal vs. Qs Moderate Growth | Ishares Municipal vs. T Rowe Price |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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