Correlation Between Merck and Mfs Series
Can any of the company-specific risk be diversified away by investing in both Merck and Mfs Series 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 Merck and Mfs Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merck Company and Mfs Series Trust, you can compare the effects of market volatilities on Merck and Mfs Series 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 Merck with a short position of Mfs Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and Mfs Series.
Diversification Opportunities for Merck and Mfs Series
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Merck and Mfs is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and Mfs Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Series Trust and Merck 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 Merck Company are associated (or correlated) with Mfs Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Series Trust has no effect on the direction of Merck i.e., Merck and Mfs Series go up and down completely randomly.
Pair Corralation between Merck and Mfs Series
If you would invest 100.00 in Mfs Series Trust on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Mfs Series Trust or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Merck Company vs. Mfs Series Trust
Performance |
| Timeline |
| Merck Company |
| Mfs Series Trust |
Merck and Mfs Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and Mfs Series
The main advantage of trading using opposite Merck and Mfs Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, Mfs Series 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 Series will offset losses from the drop in Mfs Series' long position.| Merck vs. Pharvaris BV | Merck vs. Brinker International | Merck vs. Alcoa Corp | Merck vs. Direxion Daily FTSE |
| Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard 500 Index | Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard Total Stock |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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