Correlation Between MFS Investment and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Juniata Valley 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 Juniata Valley 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 Juniata Valley Financial, you can compare the effects of market volatilities on MFS Investment and Juniata Valley 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 Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Juniata Valley.
Diversification Opportunities for MFS Investment and Juniata Valley
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MFS and Juniata is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Juniata Valley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniata Valley Financial 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 Juniata Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniata Valley Financial has no effect on the direction of MFS Investment i.e., MFS Investment and Juniata Valley go up and down completely randomly.
Pair Corralation between MFS Investment and Juniata Valley
Considering the 90-day investment horizon MFS Investment is expected to generate 3.26 times less return on investment than Juniata Valley. But when comparing it to its historical volatility, MFS Investment Grade is 3.36 times less risky than Juniata Valley. It trades about 0.19 of its potential returns per unit of risk. Juniata Valley Financial is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,180 in Juniata Valley Financial on August 30, 2024 and sell it today you would earn a total of 95.00 from holding Juniata Valley Financial or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Investment Grade vs. Juniata Valley Financial
Performance |
| Timeline |
| MFS Investment Grade |
| Juniata Valley Financial |
MFS Investment and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Juniata Valley
The main advantage of trading using opposite MFS Investment and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Juniata Valley 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 Juniata Valley will offset losses from the drop in Juniata Valley'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 |
| Juniata Valley vs. Invesco High Income | Juniata Valley vs. Blackrock Muniholdings Ny | Juniata Valley vs. Nuveen California Select | Juniata Valley vs. MFS Investment Grade |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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