Correlation Between MFS Investment and EA Series
Can any of the company-specific risk be diversified away by investing in both MFS Investment and EA Series 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 EA Series 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 EA Series Trust, you can compare the effects of market volatilities on MFS Investment and EA Series 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and EA Series.
Diversification Opportunities for MFS Investment and EA Series
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between MFS and DRAI is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust 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 EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of MFS Investment i.e., MFS Investment and EA Series go up and down completely randomly.
Pair Corralation between MFS Investment and EA Series
Considering the 90-day investment horizon MFS Investment Grade is expected to generate 0.62 times more return on investment than EA Series. However, MFS Investment Grade is 1.62 times less risky than EA Series. It trades about 0.06 of its potential returns per unit of risk. EA Series Trust is currently generating about -0.05 per unit of risk. If you would invest 670.00 in MFS Investment Grade on August 26, 2024 and sell it today you would earn a total of 140.00 from holding MFS Investment Grade or generate 20.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 19.72% |
| Values | Daily Returns |
MFS Investment Grade vs. EA Series Trust
Performance |
| Timeline |
| MFS Investment Grade |
| EA Series Trust |
MFS Investment and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and EA Series
The main advantage of trading using opposite MFS Investment and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| MFS Investment vs. Invesco High Income | MFS Investment vs. Eaton Vance National | MFS Investment vs. Nuveen California Select | MFS Investment vs. Federated Premier Municipal |
| EA Series vs. Blackrock Muniholdings Ny | EA Series vs. MFS Investment Grade | EA Series vs. Eaton Vance National | EA Series vs. Invesco High Income |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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