Correlation Between MFS Municipal and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both MFS Municipal and Cohen Steers 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 Cohen Steers 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 Cohen Steers Qualityome, you can compare the effects of market volatilities on MFS Municipal and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Municipal and Cohen Steers.
Diversification Opportunities for MFS Municipal and Cohen Steers
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MFS and Cohen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding MFS Municipal Income and Cohen Steers Qualityome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Qualityome 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Qualityome has no effect on the direction of MFS Municipal i.e., MFS Municipal and Cohen Steers go up and down completely randomly.
Pair Corralation between MFS Municipal and Cohen Steers
Considering the 90-day investment horizon MFS Municipal Income is expected to under-perform the Cohen Steers. But the stock apears to be less risky and, when comparing its historical volatility, MFS Municipal Income is 2.13 times less risky than Cohen Steers. The stock trades about -0.09 of its potential returns per unit of risk. The Cohen Steers Qualityome is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,391 in Cohen Steers Qualityome on August 26, 2024 and sell it today you would lose (28.00) from holding Cohen Steers Qualityome or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Municipal Income vs. Cohen Steers Qualityome
Performance |
| Timeline |
| MFS Municipal Income |
| Cohen Steers Qualityome |
MFS Municipal and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Municipal and Cohen Steers
The main advantage of trading using opposite MFS Municipal and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Municipal position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' 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 |
| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Pimco Dynamic 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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