Correlation Between MFS Special and CBH
Can any of the company-specific risk be diversified away by investing in both MFS Special and CBH 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 Special and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Special Value and CBH, you can compare the effects of market volatilities on MFS Special and CBH 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 Special with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Special and CBH.
Diversification Opportunities for MFS Special and CBH
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between MFS and CBH is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding MFS Special Value and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and MFS Special 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 Special Value are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of MFS Special i.e., MFS Special and CBH go up and down completely randomly.
Pair Corralation between MFS Special and CBH
Considering the 90-day investment horizon MFS Special Value is expected to generate 1.25 times more return on investment than CBH. However, MFS Special is 1.25 times more volatile than CBH. It trades about 0.12 of its potential returns per unit of risk. CBH is currently generating about 0.08 per unit of risk. If you would invest 402.00 in MFS Special Value on August 31, 2024 and sell it today you would earn a total of 10.00 from holding MFS Special Value or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 10.29% |
| Values | Daily Returns |
MFS Special Value vs. CBH
Performance |
| Timeline |
| MFS Special Value |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MFS Special and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Special and CBH
The main advantage of trading using opposite MFS Special and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Special position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| MFS Special vs. Brookfield Business Corp | MFS Special vs. Elysee Development Corp | MFS Special vs. DWS Municipal Income | MFS Special vs. Blackrock Munivest |
| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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