Correlation Between MFS Investment and RiverNorth Flexible
Can any of the company-specific risk be diversified away by investing in both MFS Investment and RiverNorth Flexible 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 RiverNorth Flexible 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 RiverNorth Flexible Municipalome, you can compare the effects of market volatilities on MFS Investment and RiverNorth Flexible 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 RiverNorth Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and RiverNorth Flexible.
Diversification Opportunities for MFS Investment and RiverNorth Flexible
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MFS and RiverNorth is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and RiverNorth Flexible Municipalo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RiverNorth Flexible 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 RiverNorth Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RiverNorth Flexible has no effect on the direction of MFS Investment i.e., MFS Investment and RiverNorth Flexible go up and down completely randomly.
Pair Corralation between MFS Investment and RiverNorth Flexible
Considering the 90-day investment horizon MFS Investment Grade is expected to generate 0.83 times more return on investment than RiverNorth Flexible. However, MFS Investment Grade is 1.2 times less risky than RiverNorth Flexible. It trades about 0.07 of its potential returns per unit of risk. RiverNorth Flexible Municipalome is currently generating about 0.04 per unit of risk. If you would invest 667.00 in MFS Investment Grade on November 9, 2024 and sell it today you would earn a total of 148.00 from holding MFS Investment Grade or generate 22.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
MFS Investment Grade vs. RiverNorth Flexible Municipalo
Performance |
| Timeline |
| MFS Investment Grade |
| RiverNorth Flexible |
MFS Investment and RiverNorth Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and RiverNorth Flexible
The main advantage of trading using opposite MFS Investment and RiverNorth Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, RiverNorth Flexible 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 RiverNorth Flexible will offset losses from the drop in RiverNorth Flexible's long position.| MFS Investment vs. Eaton Vance National | MFS Investment vs. Nuveen California Select | MFS Investment vs. Federated Premier Municipal |
| RiverNorth Flexible vs. Blackrock Muniholdings Ny | RiverNorth Flexible vs. MFS Investment Grade | RiverNorth Flexible vs. Eaton Vance National | RiverNorth Flexible vs. Nuveen California Select |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |