Correlation Between Flaherty Crumrine and MFS Investment
Can any of the company-specific risk be diversified away by investing in both Flaherty Crumrine and MFS Investment 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 Flaherty Crumrine and MFS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flaherty Crumrine Total and MFS Investment Grade, you can compare the effects of market volatilities on Flaherty Crumrine and MFS Investment 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 Flaherty Crumrine with a short position of MFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flaherty Crumrine and MFS Investment.
Diversification Opportunities for Flaherty Crumrine and MFS Investment
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flaherty and MFS is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Flaherty Crumrine Total and MFS Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Investment Grade and Flaherty Crumrine 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 Flaherty Crumrine Total are associated (or correlated) with MFS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Investment Grade has no effect on the direction of Flaherty Crumrine i.e., Flaherty Crumrine and MFS Investment go up and down completely randomly.
Pair Corralation between Flaherty Crumrine and MFS Investment
Considering the 90-day investment horizon Flaherty Crumrine Total is expected to under-perform the MFS Investment. But the etf apears to be less risky and, when comparing its historical volatility, Flaherty Crumrine Total is 1.0 times less risky than MFS Investment. The etf trades about -0.06 of its potential returns per unit of risk. The MFS Investment Grade is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 803.00 in MFS Investment Grade on August 28, 2024 and sell it today you would earn a total of 10.00 from holding MFS Investment Grade or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flaherty Crumrine Total vs. MFS Investment Grade
Performance |
| Timeline |
| Flaherty Crumrine Total |
| MFS Investment Grade |
Flaherty Crumrine and MFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flaherty Crumrine and MFS Investment
The main advantage of trading using opposite Flaherty Crumrine and MFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flaherty Crumrine position performs unexpectedly, MFS Investment 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 Investment will offset losses from the drop in MFS Investment's long position.| Flaherty Crumrine vs. Flaherty Crumrine Preferredome | Flaherty Crumrine vs. John Hancock Preferred | Flaherty Crumrine vs. Eagle Capital Growth | Flaherty Crumrine vs. John Hancock Preferred |
| MFS Investment vs. PowerUp Acquisition Corp | MFS Investment vs. Aurora Innovation | MFS Investment vs. HUMANA INC | MFS Investment vs. Aquagold International |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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