Correlation Between Mfs Value and Huber Capital
Can any of the company-specific risk be diversified away by investing in both Mfs Value and Huber Capital 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 Value and Huber Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Value Fund and Huber Capital Diversified, you can compare the effects of market volatilities on Mfs Value and Huber Capital 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 Value with a short position of Huber Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and Huber Capital.
Diversification Opportunities for Mfs Value and Huber Capital
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mfs and Huber is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund and Huber Capital Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huber Capital Diversified and Mfs Value 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 Value Fund are associated (or correlated) with Huber Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huber Capital Diversified has no effect on the direction of Mfs Value i.e., Mfs Value and Huber Capital go up and down completely randomly.
Pair Corralation between Mfs Value and Huber Capital
Assuming the 90 days horizon Mfs Value Fund is expected to generate 0.46 times more return on investment than Huber Capital. However, Mfs Value Fund is 2.18 times less risky than Huber Capital. It trades about -0.14 of its potential returns per unit of risk. Huber Capital Diversified is currently generating about -0.23 per unit of risk. If you would invest 4,952 in Mfs Value Fund on January 6, 2025 and sell it today you would lose (158.00) from holding Mfs Value Fund or give up 3.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Value Fund vs. Huber Capital Diversified
Performance |
| Timeline |
| Mfs Value Fund |
| Huber Capital Diversified |
Mfs Value and Huber Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Value and Huber Capital
The main advantage of trading using opposite Mfs Value and Huber Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value position performs unexpectedly, Huber Capital 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 Huber Capital will offset losses from the drop in Huber Capital's long position.| Mfs Value vs. Mfs Prudent Investor | Mfs Value vs. Mfs Prudent Investor | Mfs Value vs. Mfs Prudent Investor | Mfs Value vs. Mfs Prudent Investor |
| Huber Capital vs. Gmo International Equity | Huber Capital vs. Pnc International Equity | Huber Capital vs. Dreyfusstandish Global Fixed | Huber Capital vs. Rbc China Equity |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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