Correlation Between Barclays Capital and MFS Investment
Can any of the company-specific risk be diversified away by investing in both Barclays Capital 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 Barclays Capital and MFS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and MFS Investment Grade, you can compare the effects of market volatilities on Barclays Capital 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 Barclays Capital with a short position of MFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and MFS Investment.
Diversification Opportunities for Barclays Capital and MFS Investment
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barclays and MFS is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital 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 Barclays Capital 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 Barclays Capital 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 Barclays Capital i.e., Barclays Capital and MFS Investment go up and down completely randomly.
Pair Corralation between Barclays Capital and MFS Investment
If you would invest 804.00 in MFS Investment Grade on September 1, 2024 and sell it today you would earn a total of 20.00 from holding MFS Investment Grade or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Barclays Capital vs. MFS Investment Grade
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MFS Investment Grade |
Barclays Capital and MFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and MFS Investment
The main advantage of trading using opposite Barclays Capital and MFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital 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.| Barclays Capital vs. Vanguard Total Stock | Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. iShares Core SP | Barclays Capital vs. Vanguard Total Bond |
| MFS Investment vs. Visa Class A | MFS Investment vs. Diamond Hill Investment | MFS Investment vs. Distoken Acquisition | MFS Investment vs. Associated Capital Group |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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