Correlation Between Blackrock Muniholdings and MFS High
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and MFS High 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 Blackrock Muniholdings and MFS High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniholdings Ny and MFS High Yield, you can compare the effects of market volatilities on Blackrock Muniholdings and MFS High 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 Blackrock Muniholdings with a short position of MFS High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and MFS High.
Diversification Opportunities for Blackrock Muniholdings and MFS High
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackrock and MFS is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny and MFS High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS High Yield and Blackrock Muniholdings 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 Blackrock Muniholdings Ny are associated (or correlated) with MFS High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS High Yield has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and MFS High go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and MFS High
Considering the 90-day investment horizon Blackrock Muniholdings is expected to generate 1.59 times less return on investment than MFS High. But when comparing it to its historical volatility, Blackrock Muniholdings Ny is 1.35 times less risky than MFS High. It trades about 0.04 of its potential returns per unit of risk. MFS High Yield is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 297.00 in MFS High Yield on August 28, 2024 and sell it today you would earn a total of 61.00 from holding MFS High Yield or generate 20.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Ny vs. MFS High Yield
Performance |
| Timeline |
| Blackrock Muniholdings |
| MFS High Yield |
Blackrock Muniholdings and MFS High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and MFS High
The main advantage of trading using opposite Blackrock Muniholdings and MFS High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, MFS High 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 MFS High will offset losses from the drop in MFS High's long position.| Blackrock Muniholdings vs. Eaton Vance National | Blackrock Muniholdings vs. Invesco High Income | Blackrock Muniholdings vs. Nuveen California Select | Blackrock Muniholdings vs. MFS Investment Grade |
| MFS High vs. PowerUp Acquisition Corp | MFS High vs. Aurora Innovation | MFS High vs. HUMANA INC | MFS High vs. Aquagold International |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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