Correlation Between Ellsworth Convertible and MFS High
Can any of the company-specific risk be diversified away by investing in both Ellsworth Convertible and MFS High 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 Ellsworth Convertible and MFS High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellsworth Convertible Growth and MFS High Income, you can compare the effects of market volatilities on Ellsworth Convertible and MFS High 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 Ellsworth Convertible with a short position of MFS High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellsworth Convertible and MFS High.
Diversification Opportunities for Ellsworth Convertible and MFS High
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ellsworth and MFS is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ellsworth Convertible Growth and MFS High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS High Income and Ellsworth Convertible 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 Ellsworth Convertible Growth are associated (or correlated) with MFS High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS High Income has no effect on the direction of Ellsworth Convertible i.e., Ellsworth Convertible and MFS High go up and down completely randomly.
Pair Corralation between Ellsworth Convertible and MFS High
Considering the 90-day investment horizon Ellsworth Convertible Growth is expected to generate 1.21 times more return on investment than MFS High. However, Ellsworth Convertible is 1.21 times more volatile than MFS High Income. It trades about 0.07 of its potential returns per unit of risk. MFS High Income is currently generating about 0.04 per unit of risk. If you would invest 714.00 in Ellsworth Convertible Growth on August 28, 2024 and sell it today you would earn a total of 271.00 from holding Ellsworth Convertible Growth or generate 37.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellsworth Convertible Growth vs. MFS High Income
Performance |
| Timeline |
| Ellsworth Convertible |
| MFS High Income |
Ellsworth Convertible and MFS High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellsworth Convertible and MFS High
The main advantage of trading using opposite Ellsworth Convertible and MFS High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellsworth Convertible position performs unexpectedly, MFS High 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 High will offset losses from the drop in MFS High's long position.| Ellsworth Convertible vs. Azimut Holding SpA | Ellsworth Convertible vs. Ameritrans Capital Corp | Ellsworth Convertible vs. Gdl Closed Fund | Ellsworth Convertible vs. Gabelli Global Small |
| MFS High vs. MFS Investment Grade | MFS High vs. Eaton Vance National | MFS High vs. Invesco High Income | MFS High vs. Blackrock Muniholdings Ny |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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