Correlation Between Mfs Series and Mfs California
Can any of the company-specific risk be diversified away by investing in both Mfs Series and Mfs California 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 Series and Mfs California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Series Trust and Mfs California Municipal, you can compare the effects of market volatilities on Mfs Series and Mfs California 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 Series with a short position of Mfs California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Series and Mfs California.
Diversification Opportunities for Mfs Series and Mfs California
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mfs and Mfs is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Series Trust and Mfs California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs California Municipal and Mfs Series 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 Series Trust are associated (or correlated) with Mfs California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs California Municipal has no effect on the direction of Mfs Series i.e., Mfs Series and Mfs California go up and down completely randomly.
Pair Corralation between Mfs Series and Mfs California
If you would invest 559.00 in Mfs California Municipal on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Mfs California Municipal or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Series Trust vs. Mfs California Municipal
Performance |
| Timeline |
| Mfs Series Trust |
| Mfs California Municipal |
Mfs Series and Mfs California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Series and Mfs California
The main advantage of trading using opposite Mfs Series and Mfs California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Series position performs unexpectedly, Mfs California 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 California will offset losses from the drop in Mfs California's long position.| Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard 500 Index | Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard Total Stock |
| Mfs California vs. Tax Exempt Fund Of | Mfs California vs. HUMANA INC | Mfs California vs. Aquagold International | Mfs California vs. Barloworld Ltd ADR |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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