Correlation Between MFS Investment and Phenixfin
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Phenixfin 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 Phenixfin 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 Phenixfin, you can compare the effects of market volatilities on MFS Investment and Phenixfin 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 Phenixfin. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Phenixfin.
Diversification Opportunities for MFS Investment and Phenixfin
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MFS and Phenixfin is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Phenixfin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phenixfin 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 Phenixfin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phenixfin has no effect on the direction of MFS Investment i.e., MFS Investment and Phenixfin go up and down completely randomly.
Pair Corralation between MFS Investment and Phenixfin
Considering the 90-day investment horizon MFS Investment is expected to generate 186.83 times less return on investment than Phenixfin. But when comparing it to its historical volatility, MFS Investment Grade is 191.75 times less risky than Phenixfin. It trades about 0.09 of its potential returns per unit of risk. Phenixfin is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,248 in Phenixfin on November 3, 2024 and sell it today you would earn a total of 677.00 from holding Phenixfin or generate 15.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.55% |
| Values | Daily Returns |
MFS Investment Grade vs. Phenixfin
Performance |
| Timeline |
| MFS Investment Grade |
| Phenixfin |
MFS Investment and Phenixfin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Phenixfin
The main advantage of trading using opposite MFS Investment and Phenixfin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Phenixfin 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 Phenixfin will offset losses from the drop in Phenixfin's long position.| MFS Investment vs. Eaton Vance National | MFS Investment vs. Nuveen California Select | MFS Investment vs. Federated Premier Municipal |
| Phenixfin vs. MFS Investment Grade | Phenixfin vs. Eaton Vance National | Phenixfin vs. Federated Premier Municipal | Phenixfin vs. Blackrock Muniholdings Ny |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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