Correlation Between Gmo High and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Gmo High 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 Gmo High and Mfs Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo High Yield and Mfs Research International, you can compare the effects of market volatilities on Gmo High 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 Gmo High with a short position of Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo High and Mfs Research.
Diversification Opportunities for Gmo High and Mfs Research
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gmo and Mfs is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Gmo High Yield and Mfs Research International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research Interna and Gmo High 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 Gmo High Yield 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 Interna has no effect on the direction of Gmo High i.e., Gmo High and Mfs Research go up and down completely randomly.
Pair Corralation between Gmo High and Mfs Research
Assuming the 90 days horizon Gmo High Yield is expected to generate 0.39 times more return on investment than Mfs Research. However, Gmo High Yield is 2.55 times less risky than Mfs Research. It trades about 0.17 of its potential returns per unit of risk. Mfs Research International is currently generating about 0.05 per unit of risk. If you would invest 1,545 in Gmo High Yield on September 12, 2024 and sell it today you would earn a total of 267.00 from holding Gmo High Yield or generate 17.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo High Yield vs. Mfs Research International
Performance |
| Timeline |
| Gmo High Yield |
| Mfs Research Interna |
Gmo High and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo High and Mfs Research
The main advantage of trading using opposite Gmo High and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo High 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.| Gmo High vs. Artisan High Income | Gmo High vs. Blackrock High Yield | Gmo High vs. Pax High Yield | Gmo High vs. Msift High Yield |
| Mfs Research vs. Jpmorgan High Yield | Mfs Research vs. Gmo High Yield | Mfs Research vs. Voya High Yield | Mfs Research vs. Msift 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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