Correlation Between Gdl Closed and MFS Charter
Can any of the company-specific risk be diversified away by investing in both Gdl Closed and MFS Charter 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 Gdl Closed and MFS Charter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gdl Closed Fund and MFS Charter Income, you can compare the effects of market volatilities on Gdl Closed and MFS Charter 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 Gdl Closed with a short position of MFS Charter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gdl Closed and MFS Charter.
Diversification Opportunities for Gdl Closed and MFS Charter
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gdl and MFS is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gdl Closed Fund and MFS Charter Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Charter Income and Gdl Closed 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 Gdl Closed Fund are associated (or correlated) with MFS Charter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Charter Income has no effect on the direction of Gdl Closed i.e., Gdl Closed and MFS Charter go up and down completely randomly.
Pair Corralation between Gdl Closed and MFS Charter
Considering the 90-day investment horizon Gdl Closed is expected to generate 1.11 times less return on investment than MFS Charter. But when comparing it to its historical volatility, Gdl Closed Fund is 1.54 times less risky than MFS Charter. It trades about 0.09 of its potential returns per unit of risk. MFS Charter Income is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 541.00 in MFS Charter Income on November 3, 2024 and sell it today you would earn a total of 95.00 from holding MFS Charter Income or generate 17.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gdl Closed Fund vs. MFS Charter Income
Performance |
| Timeline |
| Gdl Closed Fund |
| MFS Charter Income |
Gdl Closed and MFS Charter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gdl Closed and MFS Charter
The main advantage of trading using opposite Gdl Closed and MFS Charter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gdl Closed position performs unexpectedly, MFS Charter 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 Charter will offset losses from the drop in MFS Charter's long position.| Gdl Closed vs. MFS Investment Grade | Gdl Closed vs. Eaton Vance National | Gdl Closed vs. Federated Premier Municipal | Gdl Closed vs. Ellsworth Convertible Growth |
| MFS Charter vs. MFS High Income | MFS Charter vs. MFS Investment Grade | MFS Charter vs. Eaton Vance National | MFS Charter vs. MFS 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |