Correlation Between Dunham High and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Dunham High and Mfs Lifetime 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 High and Mfs Lifetime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham High Yield and Mfs Lifetime 2065, you can compare the effects of market volatilities on Dunham High and Mfs Lifetime 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 High with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Mfs Lifetime.
Diversification Opportunities for Dunham High and Mfs Lifetime
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dunham and Mfs is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Mfs Lifetime 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2065 and Dunham High 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 High Yield are associated (or correlated) with Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime 2065 has no effect on the direction of Dunham High i.e., Dunham High and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Dunham High and Mfs Lifetime
Assuming the 90 days horizon Dunham High is expected to generate 4.43 times less return on investment than Mfs Lifetime. But when comparing it to its historical volatility, Dunham High Yield is 3.58 times less risky than Mfs Lifetime. It trades about 0.22 of its potential returns per unit of risk. Mfs Lifetime 2065 is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,020 in Mfs Lifetime 2065 on September 3, 2024 and sell it today you would earn a total of 31.00 from holding Mfs Lifetime 2065 or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham High Yield vs. Mfs Lifetime 2065
Performance |
| Timeline |
| Dunham High Yield |
| Mfs Lifetime 2065 |
Dunham High and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Mfs Lifetime
The main advantage of trading using opposite Dunham High and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham High position performs unexpectedly, Mfs Lifetime 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 Lifetime will offset losses from the drop in Mfs Lifetime's long position.| Dunham High vs. Vanguard High Yield Corporate | Dunham High vs. Vanguard High Yield Porate | Dunham High vs. Blackrock Hi Yld | Dunham High vs. Blackrock High Yield |
| Mfs Lifetime vs. Msift High Yield | Mfs Lifetime vs. American Century High | Mfs Lifetime vs. Dunham High Yield | Mfs Lifetime vs. Pioneer High Yield |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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