Correlation Between MFS High and Strats SM
Can any of the company-specific risk be diversified away by investing in both MFS High and Strats SM 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 Strats SM 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 Strats SM Trust, you can compare the effects of market volatilities on MFS High and Strats SM 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 Strats SM. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS High and Strats SM.
Diversification Opportunities for MFS High and Strats SM
Very good diversification
The 3 months correlation between MFS and Strats is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding MFS High Income and Strats SM Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strats SM Trust 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 Strats SM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strats SM Trust has no effect on the direction of MFS High i.e., MFS High and Strats SM go up and down completely randomly.
Pair Corralation between MFS High and Strats SM
Considering the 90-day investment horizon MFS High Income is expected to generate 3.95 times more return on investment than Strats SM. However, MFS High is 3.95 times more volatile than Strats SM Trust. It trades about 0.09 of its potential returns per unit of risk. Strats SM Trust is currently generating about 0.0 per unit of risk. If you would invest 369.00 in MFS High Income on November 4, 2024 and sell it today you would earn a total of 6.00 from holding MFS High Income or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
MFS High Income vs. Strats SM Trust
Performance |
| Timeline |
| MFS High Income |
| Strats SM Trust |
MFS High and Strats SM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS High and Strats SM
The main advantage of trading using opposite MFS High and Strats SM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS High position performs unexpectedly, Strats SM 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 Strats SM will offset losses from the drop in Strats SM'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 |
| Strats SM vs. STRATS SM Trust | Strats SM vs. SYNTHETIC FIXED INCOME | Strats SM vs. Strats SM Trust | Strats SM vs. STRATSSM Certificates series |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |