Correlation Between Highland Longshort and Mfs International
Can any of the company-specific risk be diversified away by investing in both Highland Longshort and Mfs International 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 Highland Longshort and Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highland Longshort Healthcare and Mfs International Growth, you can compare the effects of market volatilities on Highland Longshort and Mfs International 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 Highland Longshort with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Longshort and Mfs International.
Diversification Opportunities for Highland Longshort and Mfs International
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Highland and Mfs is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare and Mfs International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International Growth and Highland Longshort 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 Highland Longshort Healthcare are associated (or correlated) with Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International Growth has no effect on the direction of Highland Longshort i.e., Highland Longshort and Mfs International go up and down completely randomly.
Pair Corralation between Highland Longshort and Mfs International
Assuming the 90 days horizon Highland Longshort Healthcare is expected to under-perform the Mfs International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Highland Longshort Healthcare is 3.0 times less risky than Mfs International. The mutual fund trades about -0.17 of its potential returns per unit of risk. The Mfs International Growth is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 4,441 in Mfs International Growth on September 14, 2024 and sell it today you would earn a total of 109.00 from holding Mfs International Growth or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Highland Longshort Healthcare vs. Mfs International Growth
Performance |
| Timeline |
| Highland Longshort |
| Mfs International Growth |
Highland Longshort and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Longshort and Mfs International
The main advantage of trading using opposite Highland Longshort and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Longshort position performs unexpectedly, Mfs International 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 International will offset losses from the drop in Mfs International's long position.| Highland Longshort vs. Franklin Real Estate | Highland Longshort vs. Fidelity Real Estate | Highland Longshort vs. Goldman Sachs Real | Highland Longshort vs. Commonwealth Real Estate |
| Mfs International vs. Multisector Bond Sma | Mfs International vs. Dreyfusstandish Global Fixed | Mfs International vs. Dws Government Money | Mfs International vs. Ft 9331 Corporate |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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