Correlation Between MFS High and Nuveen Municipalome
Can any of the company-specific risk be diversified away by investing in both MFS High and Nuveen Municipalome 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 Municipalome 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 Nuveen Municipalome, you can compare the effects of market volatilities on MFS High and Nuveen Municipalome 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 Municipalome. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS High and Nuveen Municipalome.
Diversification Opportunities for MFS High and Nuveen Municipalome
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MFS and Nuveen is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding MFS High Income and Nuveen Municipalome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Municipalome 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 Nuveen Municipalome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Municipalome has no effect on the direction of MFS High i.e., MFS High and Nuveen Municipalome go up and down completely randomly.
Pair Corralation between MFS High and Nuveen Municipalome
Considering the 90-day investment horizon MFS High Income is expected to generate 1.38 times more return on investment than Nuveen Municipalome. However, MFS High is 1.38 times more volatile than Nuveen Municipalome. It trades about 0.1 of its potential returns per unit of risk. Nuveen Municipalome is currently generating about -0.05 per unit of risk. If you would invest 377.00 in MFS High Income on August 31, 2024 and sell it today you would earn a total of 5.00 from holding MFS High Income or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS High Income vs. Nuveen Municipalome
Performance |
| Timeline |
| MFS High Income |
| Nuveen Municipalome |
MFS High and Nuveen Municipalome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS High and Nuveen Municipalome
The main advantage of trading using opposite MFS High and Nuveen Municipalome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS High position performs unexpectedly, Nuveen Municipalome 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 Municipalome will offset losses from the drop in Nuveen Municipalome's long position.| MFS High vs. MFS Investment Grade | MFS High vs. Eaton Vance National | MFS High vs. Invesco High Income | MFS High vs. Blackrock Muniholdings Ny |
| Nuveen Municipalome vs. Platinum Asia Investments | Nuveen Municipalome vs. Eaton Vance New | Nuveen Municipalome vs. Nuveen New York | Nuveen Municipalome vs. Nuveen Amt Free Municipal |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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