Correlation Between Msif Advantage and Municipal Bond
Can any of the company-specific risk be diversified away by investing in both Msif Advantage and Municipal Bond 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 Msif Advantage and Municipal Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Msif Advantage Port and Municipal Bond Fund, you can compare the effects of market volatilities on Msif Advantage and Municipal Bond 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 Msif Advantage with a short position of Municipal Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Msif Advantage and Municipal Bond.
Diversification Opportunities for Msif Advantage and Municipal Bond
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Msif and Municipal is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Msif Advantage Port and Municipal Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Municipal Bond and Msif Advantage 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 Msif Advantage Port are associated (or correlated) with Municipal Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Municipal Bond has no effect on the direction of Msif Advantage i.e., Msif Advantage and Municipal Bond go up and down completely randomly.
Pair Corralation between Msif Advantage and Municipal Bond
Assuming the 90 days horizon Msif Advantage Port is expected to generate 7.35 times more return on investment than Municipal Bond. However, Msif Advantage is 7.35 times more volatile than Municipal Bond Fund. It trades about 0.08 of its potential returns per unit of risk. Municipal Bond Fund is currently generating about 0.06 per unit of risk. If you would invest 1,340 in Msif Advantage Port on September 3, 2024 and sell it today you would earn a total of 1,148 from holding Msif Advantage Port or generate 85.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Msif Advantage Port vs. Municipal Bond Fund
Performance |
| Timeline |
| Msif Advantage Port |
| Municipal Bond |
Msif Advantage and Municipal Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Msif Advantage and Municipal Bond
The main advantage of trading using opposite Msif Advantage and Municipal Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Msif Advantage position performs unexpectedly, Municipal Bond 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 Municipal Bond will offset losses from the drop in Municipal Bond's long position.| Msif Advantage vs. American Funds Inflation | Msif Advantage vs. Tiaa Cref Inflation Linked Bond | Msif Advantage vs. Lord Abbett Inflation | Msif Advantage vs. Goldman Sachs Managed |
| Municipal Bond vs. Fidelity Flex Small | Municipal Bond vs. Fidelity Flex International | Municipal Bond vs. Fidelity Flex Mid | Municipal Bond vs. Fidelity Flex 500 |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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