Correlation Between Mfs Lifetime and Nuveen Arizona
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Nuveen Arizona 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 Mfs Lifetime and Nuveen Arizona into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Lifetime 2065 and Nuveen Arizona Municipal, you can compare the effects of market volatilities on Mfs Lifetime and Nuveen Arizona 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 Mfs Lifetime with a short position of Nuveen Arizona. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Nuveen Arizona.
Diversification Opportunities for Mfs Lifetime and Nuveen Arizona
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mfs and Nuveen is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2065 and Nuveen Arizona Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Arizona Municipal and Mfs Lifetime 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 Mfs Lifetime 2065 are associated (or correlated) with Nuveen Arizona. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Arizona Municipal has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Nuveen Arizona go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Nuveen Arizona
Assuming the 90 days horizon Mfs Lifetime 2065 is expected to generate 3.07 times more return on investment than Nuveen Arizona. However, Mfs Lifetime is 3.07 times more volatile than Nuveen Arizona Municipal. It trades about 0.08 of its potential returns per unit of risk. Nuveen Arizona Municipal is currently generating about 0.07 per unit of risk. If you would invest 802.00 in Mfs Lifetime 2065 on September 3, 2024 and sell it today you would earn a total of 262.00 from holding Mfs Lifetime 2065 or generate 32.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Lifetime 2065 vs. Nuveen Arizona Municipal
Performance |
| Timeline |
| Mfs Lifetime 2065 |
| Nuveen Arizona Municipal |
Mfs Lifetime and Nuveen Arizona Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Nuveen Arizona
The main advantage of trading using opposite Mfs Lifetime and Nuveen Arizona positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Nuveen Arizona 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 Nuveen Arizona will offset losses from the drop in Nuveen Arizona's long position.| Mfs Lifetime vs. Siit Global Managed | Mfs Lifetime vs. 361 Global Longshort | Mfs Lifetime vs. Qs Global Equity | Mfs Lifetime vs. Morningstar Global Income |
| Nuveen Arizona vs. Wt Mutual Fund | Nuveen Arizona vs. Franklin Government Money | Nuveen Arizona vs. John Hancock Money | Nuveen Arizona vs. Prudential Government Money |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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