Correlation Between MFS Investment and Innovator Capital
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Innovator Capital 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 Innovator Capital 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 Innovator Capital Management, you can compare the effects of market volatilities on MFS Investment and Innovator Capital 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 Innovator Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Innovator Capital.
Diversification Opportunities for MFS Investment and Innovator Capital
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between MFS and Innovator is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Innovator Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Capital 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 Innovator Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Capital has no effect on the direction of MFS Investment i.e., MFS Investment and Innovator Capital go up and down completely randomly.
Pair Corralation between MFS Investment and Innovator Capital
If you would invest 801.00 in MFS Investment Grade on August 30, 2024 and sell it today you would earn a total of 20.00 from holding MFS Investment Grade or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
MFS Investment Grade vs. Innovator Capital Management
Performance |
| Timeline |
| MFS Investment Grade |
| Innovator Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
MFS Investment and Innovator Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Innovator Capital
The main advantage of trading using opposite MFS Investment and Innovator Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Innovator Capital 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 Innovator Capital will offset losses from the drop in Innovator Capital'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 |
| Innovator Capital vs. AXS TSLA Bear | Innovator Capital vs. Direxion Shares ETF | Innovator Capital vs. Direxion Shares ETF | Innovator Capital vs. Direxion Shares ETF |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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