Correlation Between MFS Municipal and Macquariefirst
Can any of the company-specific risk be diversified away by investing in both MFS Municipal and Macquariefirst 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 Municipal and Macquariefirst into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Municipal Income and Macquariefirst Tr Global, you can compare the effects of market volatilities on MFS Municipal and Macquariefirst 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 Municipal with a short position of Macquariefirst. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Municipal and Macquariefirst.
Diversification Opportunities for MFS Municipal and Macquariefirst
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between MFS and Macquariefirst is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding MFS Municipal Income and Macquariefirst Tr Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquariefirst Tr Global and MFS Municipal 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 Municipal Income are associated (or correlated) with Macquariefirst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquariefirst Tr Global has no effect on the direction of MFS Municipal i.e., MFS Municipal and Macquariefirst go up and down completely randomly.
Pair Corralation between MFS Municipal and Macquariefirst
If you would invest 845.00 in Macquariefirst Tr Global on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Macquariefirst Tr Global or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.33% |
| Values | Daily Returns |
MFS Municipal Income vs. Macquariefirst Tr Global
Performance |
| Timeline |
| MFS Municipal Income |
| Macquariefirst Tr Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
MFS Municipal and Macquariefirst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Municipal and Macquariefirst
The main advantage of trading using opposite MFS Municipal and Macquariefirst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Municipal position performs unexpectedly, Macquariefirst 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 Macquariefirst will offset losses from the drop in Macquariefirst's long position.| MFS Municipal vs. Eaton Vance National | MFS Municipal vs. Invesco High Income | MFS Municipal vs. Blackrock Muniholdings Ny | MFS Municipal vs. Nuveen California Select |
| Macquariefirst vs. MFS High Yield | Macquariefirst vs. MFS Investment Grade | Macquariefirst vs. MFS Municipal Income | Macquariefirst vs. DTF Tax Free |
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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