Correlation Between Focus Financial and MFS Investment
Can any of the company-specific risk be diversified away by investing in both Focus Financial 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 Focus Financial and MFS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Financial Partners and MFS Investment Grade, you can compare the effects of market volatilities on Focus Financial 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 Focus Financial with a short position of MFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Financial and MFS Investment.
Diversification Opportunities for Focus Financial and MFS Investment
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Focus and MFS is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Focus Financial Partners 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 Focus Financial 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 Focus Financial Partners 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 Focus Financial i.e., Focus Financial and MFS Investment go up and down completely randomly.
Pair Corralation between Focus Financial and MFS Investment
If you would invest 787.00 in MFS Investment Grade on October 20, 2024 and sell it today you would earn a total of 9.00 from holding MFS Investment Grade or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Focus Financial Partners vs. MFS Investment Grade
Performance |
| Timeline |
| Focus Financial Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MFS Investment Grade |
Focus Financial and MFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Financial and MFS Investment
The main advantage of trading using opposite Focus Financial and MFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Financial 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.| Focus Financial vs. Federated Premier Municipal | Focus Financial vs. Blackrock Muniyield | Focus Financial vs. Diamond Hill Investment | Focus Financial vs. NXG NextGen Infrastructure |
| MFS Investment vs. Eaton Vance National | MFS Investment vs. Nuveen California Select | MFS Investment vs. Federated Premier Municipal |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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