Correlation Between GAMCO Natural and MFS High
Can any of the company-specific risk be diversified away by investing in both GAMCO Natural 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 GAMCO Natural and MFS High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMCO Natural Resources and MFS High Income, you can compare the effects of market volatilities on GAMCO Natural 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 GAMCO Natural with a short position of MFS High. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Natural and MFS High.
Diversification Opportunities for GAMCO Natural and MFS High
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GAMCO and MFS is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Natural Resources 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 GAMCO Natural 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 GAMCO Natural Resources 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 GAMCO Natural i.e., GAMCO Natural and MFS High go up and down completely randomly.
Pair Corralation between GAMCO Natural and MFS High
Considering the 90-day investment horizon GAMCO Natural Resources is expected to generate 1.37 times more return on investment than MFS High. However, GAMCO Natural is 1.37 times more volatile than MFS High Income. It trades about 0.04 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 469.00 in GAMCO Natural Resources on August 28, 2024 and sell it today you would earn a total of 114.00 from holding GAMCO Natural Resources or generate 24.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMCO Natural Resources vs. MFS High Income
Performance |
| Timeline |
| GAMCO Natural Resources |
| MFS High Income |
GAMCO Natural and MFS High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Natural and MFS High
The main advantage of trading using opposite GAMCO Natural and MFS High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Natural 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.| GAMCO Natural vs. MFS High Income | GAMCO Natural vs. MFS Investment Grade | GAMCO Natural vs. Eaton Vance National | GAMCO Natural vs. Invesco High Income |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |