Correlation Between Leggmason Partners and Mfs High
Can any of the company-specific risk be diversified away by investing in both Leggmason Partners and Mfs High 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 Leggmason Partners and Mfs High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leggmason Partners Institutional and Mfs High Income, you can compare the effects of market volatilities on Leggmason Partners and Mfs High 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 Leggmason Partners with a short position of Mfs High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leggmason Partners and Mfs High.
Diversification Opportunities for Leggmason Partners and Mfs High
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Leggmason and Mfs is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Leggmason Partners Institution and Mfs High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs High Income and Leggmason Partners 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 Leggmason Partners Institutional are associated (or correlated) with Mfs High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs High Income has no effect on the direction of Leggmason Partners i.e., Leggmason Partners and Mfs High go up and down completely randomly.
Pair Corralation between Leggmason Partners and Mfs High
If you would invest 309.00 in Mfs High Income on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Mfs High Income or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leggmason Partners Institution vs. Mfs High Income
Performance |
| Timeline |
| Leggmason Partners |
| Mfs High Income |
Leggmason Partners and Mfs High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leggmason Partners and Mfs High
The main advantage of trading using opposite Leggmason Partners and Mfs High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leggmason Partners position performs unexpectedly, Mfs High 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 High will offset losses from the drop in Mfs High's long position.| Leggmason Partners vs. Smallcap Growth Fund | Leggmason Partners vs. Eip Growth And | Leggmason Partners vs. Chase Growth Fund | Leggmason Partners vs. Pace Large Growth |
| Mfs High vs. Mfs Prudent Investor | Mfs High vs. Mfs Prudent Investor | Mfs High vs. Mfs Prudent Investor | Mfs High vs. Mfs Prudent Investor |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |