Correlation Between MFS Investment and IShares IBonds
Can any of the company-specific risk be diversified away by investing in both MFS Investment and IShares IBonds 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 IShares IBonds 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 iShares iBonds 2028, you can compare the effects of market volatilities on MFS Investment and IShares IBonds 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 IShares IBonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and IShares IBonds.
Diversification Opportunities for MFS Investment and IShares IBonds
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MFS and IShares is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and iShares iBonds 2028 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares iBonds 2028 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 IShares IBonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares iBonds 2028 has no effect on the direction of MFS Investment i.e., MFS Investment and IShares IBonds go up and down completely randomly.
Pair Corralation between MFS Investment and IShares IBonds
Considering the 90-day investment horizon MFS Investment Grade is expected to generate 1.63 times more return on investment than IShares IBonds. However, MFS Investment is 1.63 times more volatile than iShares iBonds 2028. It trades about 0.13 of its potential returns per unit of risk. iShares iBonds 2028 is currently generating about 0.12 per unit of risk. If you would invest 720.00 in MFS Investment Grade on September 12, 2024 and sell it today you would earn a total of 113.00 from holding MFS Investment Grade or generate 15.69% 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. iShares iBonds 2028
Performance |
| Timeline |
| MFS Investment Grade |
| iShares iBonds 2028 |
MFS Investment and IShares IBonds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and IShares IBonds
The main advantage of trading using opposite MFS Investment and IShares IBonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, IShares IBonds 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 IShares IBonds will offset losses from the drop in IShares IBonds' long position.| MFS Investment vs. Eaton Vance National | MFS Investment vs. Nuveen California Select | MFS Investment vs. Federated Premier Municipal |
| IShares IBonds vs. Rivernorth Opportunistic Municipalome | IShares IBonds vs. MFS Investment Grade | IShares IBonds vs. Blackrock Muniholdings Ny | IShares IBonds vs. Blackrock Muniholdings Closed |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |