Correlation Between MFS Special and Insight Select
Can any of the company-specific risk be diversified away by investing in both MFS Special and Insight Select 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 Insight Select 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 Insight Select Income, you can compare the effects of market volatilities on MFS Special and Insight Select 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 Insight Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Special and Insight Select.
Diversification Opportunities for MFS Special and Insight Select
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MFS and Insight is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding MFS Special Value and Insight Select Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insight Select Income 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 Insight Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insight Select Income has no effect on the direction of MFS Special i.e., MFS Special and Insight Select go up and down completely randomly.
Pair Corralation between MFS Special and Insight Select
If you would invest 1,545 in Insight Select Income on August 31, 2024 and sell it today you would earn a total of 197.00 from holding Insight Select Income or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
MFS Special Value vs. Insight Select Income
Performance |
| Timeline |
| MFS Special Value |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Insight Select Income |
MFS Special and Insight Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Special and Insight Select
The main advantage of trading using opposite MFS Special and Insight Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Special position performs unexpectedly, Insight Select 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 Insight Select will offset losses from the drop in Insight Select'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 |
| Insight Select vs. Blackrock Enhanced Government | Insight Select vs. Eaton Vance National | Insight Select vs. Nuveen New York | Insight Select 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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