Correlation Between MFS Investment and Virtus
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Virtus 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 Investment and Virtus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Investment Grade and Virtus, you can compare the effects of market volatilities on MFS Investment and Virtus 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 Investment with a short position of Virtus. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Virtus.
Diversification Opportunities for MFS Investment and Virtus
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MFS and Virtus is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Virtus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus and MFS Investment 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 Investment Grade are associated (or correlated) with Virtus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus has no effect on the direction of MFS Investment i.e., MFS Investment and Virtus go up and down completely randomly.
Pair Corralation between MFS Investment and Virtus
If you would invest 802.00 in MFS Investment Grade on September 13, 2024 and sell it today you would earn a total of 31.00 from holding MFS Investment Grade or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
MFS Investment Grade vs. Virtus
Performance |
| Timeline |
| MFS Investment Grade |
| Virtus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MFS Investment and Virtus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Virtus
The main advantage of trading using opposite MFS Investment and Virtus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Virtus 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 Virtus will offset losses from the drop in Virtus' long position.| MFS Investment vs. Eaton Vance National | MFS Investment vs. Nuveen California Select | MFS Investment vs. Federated Premier Municipal |
| Virtus vs. Virtus Newfleet Multi Sector | Virtus vs. Invesco BulletShares 2024 | Virtus vs. FlexShares Core Select | Virtus vs. Invesco BulletShares 2025 |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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