Correlation Between MFS Investment and MFS Special
Can any of the company-specific risk be diversified away by investing in both MFS Investment and MFS Special 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 MFS Special 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 MFS Special Value, you can compare the effects of market volatilities on MFS Investment and MFS Special 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 MFS Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and MFS Special.
Diversification Opportunities for MFS Investment and MFS Special
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MFS and MFS is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and MFS Special Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Special Value 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 MFS Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Special Value has no effect on the direction of MFS Investment i.e., MFS Investment and MFS Special go up and down completely randomly.
Pair Corralation between MFS Investment and MFS Special
Considering the 90-day investment horizon MFS Investment is expected to generate 1.62 times less return on investment than MFS Special. But when comparing it to its historical volatility, MFS Investment Grade is 1.0 times less risky than MFS Special. It trades about 0.08 of its potential returns per unit of risk. MFS Special Value is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 402.00 in MFS Special Value on August 31, 2024 and sell it today you would earn a total of 10.00 from holding MFS Special Value or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.56% |
| Values | Daily Returns |
MFS Investment Grade vs. MFS Special Value
Performance |
| Timeline |
| MFS Investment Grade |
| MFS Special Value |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MFS Investment and MFS Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and MFS Special
The main advantage of trading using opposite MFS Investment and MFS Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, MFS Special 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 MFS Special will offset losses from the drop in MFS Special's long position.| MFS Investment vs. HUMANA INC | MFS Investment vs. SCOR PK | MFS Investment vs. Aquagold International | MFS Investment vs. Thrivent High Yield |
| MFS Special vs. Brookfield Business Corp | MFS Special vs. Elysee Development Corp | MFS Special vs. DWS Municipal Income | MFS Special vs. Blackrock Munivest |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |