Correlation Between Mfs Corporate and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Mfs Corporate and Dow Jones 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 Corporate and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Porate Bond and Dow Jones Industrial, you can compare the effects of market volatilities on Mfs Corporate and Dow Jones 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 Corporate with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Corporate and Dow Jones.
Diversification Opportunities for Mfs Corporate and Dow Jones
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mfs and Dow is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Porate Bond and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Mfs Corporate 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 Porate Bond are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Mfs Corporate i.e., Mfs Corporate and Dow Jones go up and down completely randomly.
Pair Corralation between Mfs Corporate and Dow Jones
Assuming the 90 days horizon Mfs Corporate is expected to generate 10.41 times less return on investment than Dow Jones. But when comparing it to its historical volatility, Mfs Porate Bond is 2.5 times less risky than Dow Jones. It trades about 0.09 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 4,176,346 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 314,719 from holding Dow Jones Industrial or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mfs Porate Bond vs. Dow Jones Industrial
Performance |
| Timeline |
Mfs Corporate and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Mfs Porate Bond
Pair trading matchups for Mfs Corporate
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Mfs Corporate and Dow Jones
The main advantage of trading using opposite Mfs Corporate and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Corporate position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Mfs Corporate vs. Clearbridge Energy Mlp | Mfs Corporate vs. World Energy Fund | Mfs Corporate vs. Goehring Rozencwajg Resources | Mfs Corporate vs. Energy Services Fund |
| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |