Correlation Between Mfs California and Mfs Blended
Can any of the company-specific risk be diversified away by investing in both Mfs California and Mfs Blended 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 California and Mfs Blended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs California Municipal and Mfs Blended Research, you can compare the effects of market volatilities on Mfs California and Mfs Blended 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 California with a short position of Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs California and Mfs Blended.
Diversification Opportunities for Mfs California and Mfs Blended
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mfs and Mfs is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Mfs California Municipal and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research and Mfs California 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 California Municipal are associated (or correlated) with Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of Mfs California i.e., Mfs California and Mfs Blended go up and down completely randomly.
Pair Corralation between Mfs California and Mfs Blended
Assuming the 90 days horizon Mfs California is expected to generate 5.4 times less return on investment than Mfs Blended. But when comparing it to its historical volatility, Mfs California Municipal is 3.39 times less risky than Mfs Blended. It trades about 0.18 of its potential returns per unit of risk. Mfs Blended Research is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,582 in Mfs Blended Research on August 31, 2024 and sell it today you would earn a total of 109.00 from holding Mfs Blended Research or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs California Municipal vs. Mfs Blended Research
Performance |
| Timeline |
| Mfs California Municipal |
| Mfs Blended Research |
Mfs California and Mfs Blended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs California and Mfs Blended
The main advantage of trading using opposite Mfs California and Mfs Blended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs California position performs unexpectedly, Mfs Blended 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 Blended will offset losses from the drop in Mfs Blended's long position.| Mfs California vs. Franklin California Tax Free | Mfs California vs. Franklin California Tax Free | Mfs California vs. Vanguard California Long Term | Mfs California vs. Tax Exempt Fund Of |
| Mfs Blended vs. Mfs Aggressive Growth | Mfs Blended vs. Mfs Research Fund | Mfs Blended vs. Mfs Series Trust | Mfs Blended vs. Mfs California Municipal |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |