Correlation Between MFS Municipal and VCIF
Can any of the company-specific risk be diversified away by investing in both MFS Municipal and VCIF 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 VCIF 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 VCIF, you can compare the effects of market volatilities on MFS Municipal and VCIF 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 VCIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Municipal and VCIF.
Diversification Opportunities for MFS Municipal and VCIF
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MFS and VCIF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MFS Municipal Income and VCIF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VCIF 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 VCIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VCIF has no effect on the direction of MFS Municipal i.e., MFS Municipal and VCIF go up and down completely randomly.
Pair Corralation between MFS Municipal and VCIF
If you would invest 476.00 in MFS Municipal Income on November 27, 2024 and sell it today you would earn a total of 71.00 from holding MFS Municipal Income or generate 14.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MFS Municipal Income vs. VCIF
Performance |
| Timeline |
| MFS Municipal Income |
| VCIF |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
MFS Municipal and VCIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Municipal and VCIF
The main advantage of trading using opposite MFS Municipal and VCIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Municipal position performs unexpectedly, VCIF 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 VCIF will offset losses from the drop in VCIF's long position.| MFS Municipal vs. Eaton Vance National | MFS Municipal vs. Blackrock Muniholdings Ny | MFS Municipal vs. Nuveen California Select | MFS Municipal vs. MFS Investment Grade |
| VCIF vs. MFS Investment Grade | VCIF vs. Eaton Vance National | VCIF vs. MFS Municipal Income | VCIF vs. Blackrock Muniholdings Closed |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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