Correlation Between Nuveen Floating and MFS Investment
Can any of the company-specific risk be diversified away by investing in both Nuveen Floating and MFS Investment 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 Nuveen Floating and MFS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Floating Rate and MFS Investment Grade, you can compare the effects of market volatilities on Nuveen Floating and MFS Investment 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 Nuveen Floating with a short position of MFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Floating and MFS Investment.
Diversification Opportunities for Nuveen Floating and MFS Investment
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nuveen and MFS is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Floating Rate and MFS Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Investment Grade and Nuveen Floating 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 Nuveen Floating Rate are associated (or correlated) with MFS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Investment Grade has no effect on the direction of Nuveen Floating i.e., Nuveen Floating and MFS Investment go up and down completely randomly.
Pair Corralation between Nuveen Floating and MFS Investment
Considering the 90-day investment horizon Nuveen Floating Rate is expected to generate 0.98 times more return on investment than MFS Investment. However, Nuveen Floating Rate is 1.02 times less risky than MFS Investment. It trades about 0.13 of its potential returns per unit of risk. MFS Investment Grade is currently generating about 0.07 per unit of risk. If you would invest 665.00 in Nuveen Floating Rate on August 31, 2024 and sell it today you would earn a total of 238.00 from holding Nuveen Floating Rate or generate 35.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Floating Rate vs. MFS Investment Grade
Performance |
| Timeline |
| Nuveen Floating Rate |
| MFS Investment Grade |
Nuveen Floating and MFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Floating and MFS Investment
The main advantage of trading using opposite Nuveen Floating and MFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Floating position performs unexpectedly, MFS Investment 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 Investment will offset losses from the drop in MFS Investment's long position.| Nuveen Floating vs. MFS Investment Grade | Nuveen Floating vs. Eaton Vance Municipal | Nuveen Floating vs. DTF Tax Free | Nuveen Floating vs. HUMANA INC |
| MFS Investment vs. HUMANA INC | MFS Investment vs. SCOR PK | MFS Investment vs. Aquagold International | MFS Investment vs. Thrivent 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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