Correlation Between MFS Investment and Nuveen Massachusetts
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Nuveen Massachusetts 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 Massachusetts 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 Massachusetts Quality, you can compare the effects of market volatilities on MFS Investment and Nuveen Massachusetts 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 Massachusetts. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Nuveen Massachusetts.
Diversification Opportunities for MFS Investment and Nuveen Massachusetts
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MFS and Nuveen is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Nuveen Massachusetts Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Massachusetts 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 Massachusetts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Massachusetts has no effect on the direction of MFS Investment i.e., MFS Investment and Nuveen Massachusetts go up and down completely randomly.
Pair Corralation between MFS Investment and Nuveen Massachusetts
Considering the 90-day investment horizon MFS Investment Grade is expected to generate 1.21 times more return on investment than Nuveen Massachusetts. However, MFS Investment is 1.21 times more volatile than Nuveen Massachusetts Quality. It trades about 0.06 of its potential returns per unit of risk. Nuveen Massachusetts Quality is currently generating about 0.07 per unit of risk. If you would invest 682.00 in MFS Investment Grade on September 3, 2024 and sell it today you would earn a total of 142.00 from holding MFS Investment Grade or generate 20.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Investment Grade vs. Nuveen Massachusetts Quality
Performance |
| Timeline |
| MFS Investment Grade |
| Nuveen Massachusetts |
MFS Investment and Nuveen Massachusetts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Nuveen Massachusetts
The main advantage of trading using opposite MFS Investment and Nuveen Massachusetts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Nuveen Massachusetts 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 Massachusetts will offset losses from the drop in Nuveen Massachusetts' 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 |
| Nuveen Massachusetts vs. Eaton Vance National | Nuveen Massachusetts vs. Blackrock Enhanced Government | Nuveen Massachusetts vs. The Gabelli Utility | Nuveen Massachusetts vs. Nuveen California 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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