Correlation Between Mfs Research and Dow 2x
Can any of the company-specific risk be diversified away by investing in both Mfs Research and Dow 2x 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 Research and Dow 2x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Research International and Dow 2x Strategy, you can compare the effects of market volatilities on Mfs Research and Dow 2x 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 Research with a short position of Dow 2x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Research and Dow 2x.
Diversification Opportunities for Mfs Research and Dow 2x
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mfs and Dow is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Research International and Dow 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow 2x Strategy and Mfs Research 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 Research International are associated (or correlated) with Dow 2x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow 2x Strategy has no effect on the direction of Mfs Research i.e., Mfs Research and Dow 2x go up and down completely randomly.
Pair Corralation between Mfs Research and Dow 2x
Assuming the 90 days horizon Mfs Research is expected to generate 3.51 times less return on investment than Dow 2x. But when comparing it to its historical volatility, Mfs Research International is 2.44 times less risky than Dow 2x. It trades about 0.11 of its potential returns per unit of risk. Dow 2x Strategy is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 16,643 in Dow 2x Strategy on October 20, 2024 and sell it today you would earn a total of 791.00 from holding Dow 2x Strategy or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Mfs Research International vs. Dow 2x Strategy
Performance |
| Timeline |
| Mfs Research Interna |
| Dow 2x Strategy |
Mfs Research and Dow 2x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Research and Dow 2x
The main advantage of trading using opposite Mfs Research and Dow 2x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Research position performs unexpectedly, Dow 2x 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 Dow 2x will offset losses from the drop in Dow 2x's long position.| Mfs Research vs. Dow 2x Strategy | Mfs Research vs. Artisan Developing World | Mfs Research vs. Eagle Mlp Strategy | Mfs Research vs. Siit Emerging Markets |
| Dow 2x vs. Sp 500 2x | Dow 2x vs. Inverse Dow 2x | Dow 2x vs. Nasdaq 100 2x Strategy | Dow 2x vs. Russell 2000 2x |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |