Correlation Between MFS Investment and Katahdin Bankshares
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Katahdin Bankshares 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 Katahdin Bankshares 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 Katahdin Bankshares Corp, you can compare the effects of market volatilities on MFS Investment and Katahdin Bankshares 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 Katahdin Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Katahdin Bankshares.
Diversification Opportunities for MFS Investment and Katahdin Bankshares
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between MFS and Katahdin is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Katahdin Bankshares Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katahdin Bankshares Corp 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 Katahdin Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katahdin Bankshares Corp has no effect on the direction of MFS Investment i.e., MFS Investment and Katahdin Bankshares go up and down completely randomly.
Pair Corralation between MFS Investment and Katahdin Bankshares
Considering the 90-day investment horizon MFS Investment is expected to generate 6.86 times less return on investment than Katahdin Bankshares. But when comparing it to its historical volatility, MFS Investment Grade is 2.36 times less risky than Katahdin Bankshares. It trades about 0.06 of its potential returns per unit of risk. Katahdin Bankshares Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,183 in Katahdin Bankshares Corp on August 28, 2024 and sell it today you would earn a total of 257.00 from holding Katahdin Bankshares Corp or generate 11.77% 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. Katahdin Bankshares Corp
Performance |
| Timeline |
| MFS Investment Grade |
| Katahdin Bankshares Corp |
MFS Investment and Katahdin Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Katahdin Bankshares
The main advantage of trading using opposite MFS Investment and Katahdin Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Katahdin Bankshares 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 Katahdin Bankshares will offset losses from the drop in Katahdin Bankshares' long position.| MFS Investment vs. PowerUp Acquisition Corp | MFS Investment vs. Aurora Innovation | MFS Investment vs. HUMANA INC | MFS Investment vs. Aquagold International |
| Katahdin Bankshares vs. Invesco High Income | Katahdin Bankshares vs. Blackrock Muniholdings Ny | Katahdin Bankshares vs. MFS Investment Grade | Katahdin Bankshares vs. Federated Premier Municipal |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |