Correlation Between Dreyfus/standish and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish 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 Dreyfus/standish and Mfs Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfusstandish Global Fixed and Mfs Research Fund, you can compare the effects of market volatilities on Dreyfus/standish 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 Dreyfus/standish with a short position of Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Mfs Research.
Diversification Opportunities for Dreyfus/standish and Mfs Research
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dreyfus/standish and Mfs is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Mfs Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research and Dreyfus/standish 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 Dreyfusstandish Global Fixed 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 Dreyfus/standish i.e., Dreyfus/standish and Mfs Research go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Mfs Research
Assuming the 90 days horizon Dreyfusstandish Global Fixed is expected to generate 0.28 times more return on investment than Mfs Research. However, Dreyfusstandish Global Fixed is 3.6 times less risky than Mfs Research. It trades about -0.14 of its potential returns per unit of risk. Mfs Research Fund is currently generating about -0.15 per unit of risk. If you would invest 1,962 in Dreyfusstandish Global Fixed on October 9, 2024 and sell it today you would lose (46.00) from holding Dreyfusstandish Global Fixed or give up 2.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Mfs Research Fund
Performance |
| Timeline |
| Dreyfusstandish Global |
| Mfs Research |
Dreyfus/standish and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Mfs Research
The main advantage of trading using opposite Dreyfus/standish and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish 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.| Dreyfus/standish vs. Monteagle Enhanced Equity | Dreyfus/standish vs. T Rowe Price | Dreyfus/standish vs. Locorr Dynamic Equity | Dreyfus/standish vs. Siit Equity Factor |
| Mfs Research vs. Mfs Growth Fund | Mfs Research vs. Mfs Mid Cap | Mfs Research vs. Mfs Porate Bond | Mfs Research vs. Mfs Total Return |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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