Correlation Between MFS Investment and Nuveen Preferred
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Nuveen Preferred 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 Nuveen Preferred 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 Nuveen Preferred And, you can compare the effects of market volatilities on MFS Investment and Nuveen Preferred 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 Nuveen Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Nuveen Preferred.
Diversification Opportunities for MFS Investment and Nuveen Preferred
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MFS and Nuveen is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Nuveen Preferred And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Preferred And 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 Nuveen Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Preferred And has no effect on the direction of MFS Investment i.e., MFS Investment and Nuveen Preferred go up and down completely randomly.
Pair Corralation between MFS Investment and Nuveen Preferred
If you would invest 803.00 in MFS Investment Grade on August 27, 2024 and sell it today you would earn a total of 10.00 from holding MFS Investment Grade or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
MFS Investment Grade vs. Nuveen Preferred And
Performance |
| Timeline |
| MFS Investment Grade |
| Nuveen Preferred And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MFS Investment and Nuveen Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Nuveen Preferred
The main advantage of trading using opposite MFS Investment and Nuveen Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Nuveen Preferred 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 Preferred will offset losses from the drop in Nuveen Preferred's long position.| MFS Investment vs. PowerUp Acquisition Corp | MFS Investment vs. Aurora Innovation | MFS Investment vs. HUMANA INC | MFS Investment vs. Aquagold International |
| Nuveen Preferred vs. Invesco High Income | Nuveen Preferred vs. MFS Investment Grade | Nuveen Preferred vs. Eaton Vance National | Nuveen Preferred vs. Nuveen California Select |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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