Correlation Between MFS Investment and Nuveen Amt-free
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Nuveen Amt-free 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 Amt-free 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 Amt Free Municipal, you can compare the effects of market volatilities on MFS Investment and Nuveen Amt-free 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 Amt-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Nuveen Amt-free.
Diversification Opportunities for MFS Investment and Nuveen Amt-free
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MFS and Nuveen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Nuveen Amt Free Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Amt Free 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 Amt-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Amt Free has no effect on the direction of MFS Investment i.e., MFS Investment and Nuveen Amt-free go up and down completely randomly.
Pair Corralation between MFS Investment and Nuveen Amt-free
Considering the 90-day investment horizon MFS Investment Grade is expected to generate 1.02 times more return on investment than Nuveen Amt-free. However, MFS Investment is 1.02 times more volatile than Nuveen Amt Free Municipal. It trades about 0.19 of its potential returns per unit of risk. Nuveen Amt Free Municipal is currently generating about 0.18 per unit of risk. If you would invest 805.00 in MFS Investment Grade on September 2, 2024 and sell it today you would earn a total of 19.00 from holding MFS Investment Grade or generate 2.36% 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. Nuveen Amt Free Municipal
Performance |
| Timeline |
| MFS Investment Grade |
| Nuveen Amt Free |
MFS Investment and Nuveen Amt-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Nuveen Amt-free
The main advantage of trading using opposite MFS Investment and Nuveen Amt-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Nuveen Amt-free 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 Amt-free will offset losses from the drop in Nuveen Amt-free'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 |
| Nuveen Amt-free vs. Nuveen New York | Nuveen Amt-free vs. Eaton Vance New | Nuveen Amt-free vs. Pimco New York | Nuveen Amt-free vs. Nuveen Municipalome |
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.
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