Correlation Between MFS Investment and Highland Global
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Highland Global 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 Highland Global 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 Highland Global Allocation, you can compare the effects of market volatilities on MFS Investment and Highland Global 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 Highland Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Highland Global.
Diversification Opportunities for MFS Investment and Highland Global
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MFS and Highland is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Highland Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Global Allo 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 Highland Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Global Allo has no effect on the direction of MFS Investment i.e., MFS Investment and Highland Global go up and down completely randomly.
Pair Corralation between MFS Investment and Highland Global
Considering the 90-day investment horizon MFS Investment Grade is expected to generate 0.51 times more return on investment than Highland Global. However, MFS Investment Grade is 1.94 times less risky than Highland Global. It trades about 0.19 of its potential returns per unit of risk. Highland Global Allocation is currently generating about 0.04 per unit of risk. If you would invest 801.00 in MFS Investment Grade on August 30, 2024 and sell it today you would earn a total of 20.00 from holding MFS Investment Grade or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Investment Grade vs. Highland Global Allocation
Performance |
| Timeline |
| MFS Investment Grade |
| Highland Global Allo |
MFS Investment and Highland Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Highland Global
The main advantage of trading using opposite MFS Investment and Highland Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Highland Global 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 Highland Global will offset losses from the drop in Highland Global's 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 |
| Highland Global vs. Capital Income Builder | Highland Global vs. Capital Income Builder | Highland Global vs. Capital Income Builder | Highland Global vs. HUMANA INC |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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