Correlation Between Small Cap and Mfs Aggressive
Can any of the company-specific risk be diversified away by investing in both Small Cap and Mfs Aggressive 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 Small Cap and Mfs Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Cap Equity and Mfs Aggressive Growth, you can compare the effects of market volatilities on Small Cap and Mfs Aggressive 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 Small Cap with a short position of Mfs Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small Cap and Mfs Aggressive.
Diversification Opportunities for Small Cap and Mfs Aggressive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Small and Mfs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Equity and Mfs Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Aggressive Growth and Small Cap 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 Small Cap Equity are associated (or correlated) with Mfs Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Aggressive Growth has no effect on the direction of Small Cap i.e., Small Cap and Mfs Aggressive go up and down completely randomly.
Pair Corralation between Small Cap and Mfs Aggressive
If you would invest 1,779 in Small Cap Equity on September 12, 2024 and sell it today you would earn a total of 128.00 from holding Small Cap Equity or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Small Cap Equity vs. Mfs Aggressive Growth
Performance |
| Timeline |
| Small Cap Equity |
| Mfs Aggressive Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Small Cap and Mfs Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small Cap and Mfs Aggressive
The main advantage of trading using opposite Small Cap and Mfs Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small Cap position performs unexpectedly, Mfs Aggressive 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 Aggressive will offset losses from the drop in Mfs Aggressive's long position.| Small Cap vs. Elfun Government Money | Small Cap vs. General Money Market | Small Cap vs. Ubs Money Series | Small Cap vs. Schwab Treasury Money |
| Mfs Aggressive vs. Absolute Convertible Arbitrage | Mfs Aggressive vs. Calamos Dynamic Convertible | Mfs Aggressive vs. Rationalpier 88 Convertible | Mfs Aggressive vs. Virtus Convertible |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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