Correlation Between Mfs California and Mfs Series
Can any of the company-specific risk be diversified away by investing in both Mfs California and Mfs Series 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 Series 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 Series Trust, you can compare the effects of market volatilities on Mfs California and Mfs Series 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 Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs California and Mfs Series.
Diversification Opportunities for Mfs California and Mfs Series
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mfs and Mfs is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mfs California Municipal and Mfs Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Series Trust 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 Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Series Trust has no effect on the direction of Mfs California i.e., Mfs California and Mfs Series go up and down completely randomly.
Pair Corralation between Mfs California and Mfs Series
Assuming the 90 days horizon Mfs California Municipal is expected to generate 0.8 times more return on investment than Mfs Series. However, Mfs California Municipal is 1.24 times less risky than Mfs Series. It trades about 0.05 of its potential returns per unit of risk. Mfs Series Trust is currently generating about 0.0 per unit of risk. If you would invest 533.00 in Mfs California Municipal on September 1, 2024 and sell it today you would earn a total of 33.00 from holding Mfs California Municipal or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.18% |
| Values | Daily Returns |
Mfs California Municipal vs. Mfs Series Trust
Performance |
| Timeline |
| Mfs California Municipal |
| Mfs Series Trust |
Mfs California and Mfs Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs California and Mfs Series
The main advantage of trading using opposite Mfs California and Mfs Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs California position performs unexpectedly, Mfs Series 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 Series will offset losses from the drop in Mfs Series' long position.| Mfs California vs. Mfs Prudent Investor | Mfs California vs. Mfs Prudent Investor | Mfs California vs. Mfs Prudent Investor | Mfs California vs. Mfs Prudent Investor |
| Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard 500 Index | Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard Total Stock |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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