Correlation Between MFS High and Gabelli Convertible
Can any of the company-specific risk be diversified away by investing in both MFS High and Gabelli Convertible 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 Gabelli Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS High Income and Gabelli Convertible And, you can compare the effects of market volatilities on MFS High and Gabelli Convertible 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 Gabelli Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS High and Gabelli Convertible.
Diversification Opportunities for MFS High and Gabelli Convertible
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MFS and Gabelli is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding MFS High Income and Gabelli Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Convertible And 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 Income are associated (or correlated) with Gabelli Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Convertible And has no effect on the direction of MFS High i.e., MFS High and Gabelli Convertible go up and down completely randomly.
Pair Corralation between MFS High and Gabelli Convertible
Considering the 90-day investment horizon MFS High Income is expected to generate 1.08 times more return on investment than Gabelli Convertible. However, MFS High is 1.08 times more volatile than Gabelli Convertible And. It trades about -0.04 of its potential returns per unit of risk. Gabelli Convertible And is currently generating about -0.15 per unit of risk. If you would invest 378.00 in MFS High Income on December 10, 2024 and sell it today you would lose (2.00) from holding MFS High Income or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS High Income vs. Gabelli Convertible And
Performance |
| Timeline |
| MFS High Income |
| Gabelli Convertible And |
MFS High and Gabelli Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS High and Gabelli Convertible
The main advantage of trading using opposite MFS High and Gabelli Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS High position performs unexpectedly, Gabelli Convertible 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 Gabelli Convertible will offset losses from the drop in Gabelli Convertible's long position.| MFS High vs. MFS Investment Grade | MFS High vs. Eaton Vance National | MFS High vs. Blackrock Muniholdings Ny | MFS High vs. Nuveen California Select |
| Gabelli Convertible vs. Gabelli Global Small | Gabelli Convertible vs. MFS Investment Grade | Gabelli Convertible vs. Eaton Vance National | Gabelli Convertible vs. GAMCO Natural Resources |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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