Correlation Between Mfs Technology and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Mfs Technology and Segall Bryant 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 Technology and Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Technology Fund and Segall Bryant Hamll, you can compare the effects of market volatilities on Mfs Technology and Segall Bryant 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 Technology with a short position of Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Technology and Segall Bryant.
Diversification Opportunities for Mfs Technology and Segall Bryant
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mfs and Segall is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Technology Fund and Segall Bryant Hamll in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segall Bryant Hamll and Mfs Technology 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 Technology Fund are associated (or correlated) with Segall Bryant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segall Bryant Hamll has no effect on the direction of Mfs Technology i.e., Mfs Technology and Segall Bryant go up and down completely randomly.
Pair Corralation between Mfs Technology and Segall Bryant
Assuming the 90 days horizon Mfs Technology Fund is expected to generate 1.24 times more return on investment than Segall Bryant. However, Mfs Technology is 1.24 times more volatile than Segall Bryant Hamll. It trades about 0.12 of its potential returns per unit of risk. Segall Bryant Hamll is currently generating about 0.06 per unit of risk. If you would invest 4,335 in Mfs Technology Fund on November 2, 2024 and sell it today you would earn a total of 144.00 from holding Mfs Technology Fund or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Mfs Technology Fund vs. Segall Bryant Hamll
Performance |
| Timeline |
| Mfs Technology |
| Segall Bryant Hamll |
Mfs Technology and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Technology and Segall Bryant
The main advantage of trading using opposite Mfs Technology and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Technology position performs unexpectedly, Segall Bryant 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 Segall Bryant will offset losses from the drop in Segall Bryant's long position.| Mfs Technology vs. Firsthand Technology Opportunities | Mfs Technology vs. Invesco Technology Fund | Mfs Technology vs. Global Technology Portfolio | Mfs Technology vs. Technology Ultrasector Profund |
| Segall Bryant vs. Calvert Conservative Allocation | Segall Bryant vs. Pro Blend Servative Term | Segall Bryant vs. Lord Abbett Diversified | Segall Bryant vs. Goldman Sachs Short Term |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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