Correlation Between Dunham Corporate/govern and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Mfs Research 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 Dunham Corporate/govern and Mfs Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Porategovernment Bond and Mfs Research Fund, you can compare the effects of market volatilities on Dunham Corporate/govern and Mfs Research 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 Dunham Corporate/govern with a short position of Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Mfs Research.
Diversification Opportunities for Dunham Corporate/govern and Mfs Research
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dunham and Mfs is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Mfs Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research and Dunham Corporate/govern 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 Dunham Porategovernment Bond are associated (or correlated) with Mfs Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Mfs Research go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Mfs Research
Assuming the 90 days horizon Dunham Corporate/govern is expected to generate 4.43 times less return on investment than Mfs Research. But when comparing it to its historical volatility, Dunham Porategovernment Bond is 2.77 times less risky than Mfs Research. It trades about 0.11 of its potential returns per unit of risk. Mfs Research Fund is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 6,550 in Mfs Research Fund on August 30, 2024 and sell it today you would earn a total of 209.00 from holding Mfs Research Fund or generate 3.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Porategovernment Bond vs. Mfs Research Fund
Performance |
| Timeline |
| Dunham Porategovernment |
| Mfs Research |
Dunham Corporate/govern and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Mfs Research
The main advantage of trading using opposite Dunham Corporate/govern and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Mfs Research 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 Mfs Research will offset losses from the drop in Mfs Research's long position.| Dunham Corporate/govern vs. Qs Large Cap | Dunham Corporate/govern vs. Cb Large Cap | Dunham Corporate/govern vs. Tax Managed Large Cap | Dunham Corporate/govern vs. Qs Large Cap |
| Mfs Research vs. Franklin Adjustable Government | Mfs Research vs. Lord Abbett Government | Mfs Research vs. John Hancock Government | Mfs Research vs. Dunham Porategovernment Bond |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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