Correlation Between Nuveen Preferred and MFS Municipal
Can any of the company-specific risk be diversified away by investing in both Nuveen Preferred and MFS Municipal 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 Preferred and MFS Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Preferred And and MFS Municipal Income, you can compare the effects of market volatilities on Nuveen Preferred and MFS Municipal 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 Preferred with a short position of MFS Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Preferred and MFS Municipal.
Diversification Opportunities for Nuveen Preferred and MFS Municipal
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nuveen and MFS is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Preferred And and MFS Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Municipal Income and Nuveen Preferred 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 Preferred And are associated (or correlated) with MFS Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Municipal Income has no effect on the direction of Nuveen Preferred i.e., Nuveen Preferred and MFS Municipal go up and down completely randomly.
Pair Corralation between Nuveen Preferred and MFS Municipal
Considering the 90-day investment horizon Nuveen Preferred And is expected to generate 0.88 times more return on investment than MFS Municipal. However, Nuveen Preferred And is 1.14 times less risky than MFS Municipal. It trades about 0.18 of its potential returns per unit of risk. MFS Municipal Income is currently generating about 0.06 per unit of risk. If you would invest 1,498 in Nuveen Preferred And on August 31, 2024 and sell it today you would earn a total of 113.00 from holding Nuveen Preferred And or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 13.2% |
| Values | Daily Returns |
Nuveen Preferred And vs. MFS Municipal Income
Performance |
| Timeline |
| Nuveen Preferred And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MFS Municipal Income |
Nuveen Preferred and MFS Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Preferred and MFS Municipal
The main advantage of trading using opposite Nuveen Preferred and MFS Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Preferred position performs unexpectedly, MFS Municipal 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 Municipal will offset losses from the drop in MFS Municipal's long position.| Nuveen Preferred vs. Invesco High Income | Nuveen Preferred vs. MFS Investment Grade | Nuveen Preferred vs. Eaton Vance National | Nuveen Preferred vs. Nuveen California Select |
| MFS Municipal vs. Eaton Vance National | MFS Municipal vs. Invesco High Income | MFS Municipal vs. Blackrock Muniholdings Ny | MFS Municipal vs. Nuveen California Select |
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.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |