Correlation Between Mfs Value and Baird Aggregate
Can any of the company-specific risk be diversified away by investing in both Mfs Value and Baird Aggregate 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 Baird Aggregate 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 Baird Aggregate Bond, you can compare the effects of market volatilities on Mfs Value and Baird Aggregate 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 Baird Aggregate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and Baird Aggregate.
Diversification Opportunities for Mfs Value and Baird Aggregate
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mfs and Baird is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund and Baird Aggregate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Aggregate Bond 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 Baird Aggregate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Aggregate Bond has no effect on the direction of Mfs Value i.e., Mfs Value and Baird Aggregate go up and down completely randomly.
Pair Corralation between Mfs Value and Baird Aggregate
Assuming the 90 days horizon Mfs Value Fund is expected to under-perform the Baird Aggregate. In addition to that, Mfs Value is 3.82 times more volatile than Baird Aggregate Bond. It trades about -0.11 of its total potential returns per unit of risk. Baird Aggregate Bond is currently generating about -0.05 per unit of volatility. If you would invest 974.00 in Baird Aggregate Bond on October 22, 2024 and sell it today you would lose (9.00) from holding Baird Aggregate Bond or give up 0.92% 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. Baird Aggregate Bond
Performance |
| Timeline |
| Mfs Value Fund |
| Baird Aggregate Bond |
Mfs Value and Baird Aggregate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Value and Baird Aggregate
The main advantage of trading using opposite Mfs Value and Baird Aggregate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value position performs unexpectedly, Baird Aggregate 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 Baird Aggregate will offset losses from the drop in Baird Aggregate's long position.| Mfs Value vs. Blackrock Global Longshort | Mfs Value vs. Alpine Ultra Short | Mfs Value vs. Siit Ultra Short | Mfs Value vs. Rbc Short Duration |
| Baird Aggregate vs. Metropolitan West Total | Baird Aggregate vs. Mfs Emerging Markets | Baird Aggregate vs. Jpmorgan E Bond | Baird Aggregate vs. Eaton Vance Income |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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