Correlation Between MFS Investment and Malaga Financial
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Malaga Financial 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 Malaga Financial 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 Malaga Financial, you can compare the effects of market volatilities on MFS Investment and Malaga Financial 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 Malaga Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Malaga Financial.
Diversification Opportunities for MFS Investment and Malaga Financial
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MFS and Malaga is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Malaga Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malaga 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 Malaga Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malaga Financial has no effect on the direction of MFS Investment i.e., MFS Investment and Malaga Financial go up and down completely randomly.
Pair Corralation between MFS Investment and Malaga Financial
Considering the 90-day investment horizon MFS Investment Grade is expected to generate 1.49 times more return on investment than Malaga Financial. However, MFS Investment is 1.49 times more volatile than Malaga Financial. It trades about 0.08 of its potential returns per unit of risk. Malaga Financial is currently generating about -0.08 per unit of risk. If you would invest 803.00 in MFS Investment Grade on August 27, 2024 and sell it today you would earn a total of 7.00 from holding MFS Investment Grade or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Investment Grade vs. Malaga Financial
Performance |
| Timeline |
| MFS Investment Grade |
| Malaga Financial |
MFS Investment and Malaga Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Malaga Financial
The main advantage of trading using opposite MFS Investment and Malaga Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Malaga Financial 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 Malaga Financial will offset losses from the drop in Malaga Financial's long position.| MFS Investment vs. PowerUp Acquisition Corp | MFS Investment vs. Aurora Innovation | MFS Investment vs. HUMANA INC | MFS Investment vs. Aquagold International |
| Malaga Financial vs. Invesco High Income | Malaga Financial vs. Blackrock Muniholdings Ny | Malaga Financial vs. MFS Investment Grade | Malaga Financial 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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