Correlation Between Mfs Technology and Blackrock Muniassets
Can any of the company-specific risk be diversified away by investing in both Mfs Technology and Blackrock Muniassets 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 Blackrock Muniassets 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 Blackrock Muniassets, you can compare the effects of market volatilities on Mfs Technology and Blackrock Muniassets 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 Blackrock Muniassets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Technology and Blackrock Muniassets.
Diversification Opportunities for Mfs Technology and Blackrock Muniassets
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mfs and Blackrock is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Technology Fund and Blackrock Muniassets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniassets 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 Blackrock Muniassets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniassets has no effect on the direction of Mfs Technology i.e., Mfs Technology and Blackrock Muniassets go up and down completely randomly.
Pair Corralation between Mfs Technology and Blackrock Muniassets
Assuming the 90 days horizon Mfs Technology Fund is expected to generate 2.5 times more return on investment than Blackrock Muniassets. However, Mfs Technology is 2.5 times more volatile than Blackrock Muniassets. It trades about 0.18 of its potential returns per unit of risk. Blackrock Muniassets is currently generating about -0.02 per unit of risk. If you would invest 4,738 in Mfs Technology Fund on September 12, 2024 and sell it today you would earn a total of 582.00 from holding Mfs Technology Fund or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Mfs Technology Fund vs. Blackrock Muniassets
Performance |
| Timeline |
| Mfs Technology |
| Blackrock Muniassets |
Mfs Technology and Blackrock Muniassets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Technology and Blackrock Muniassets
The main advantage of trading using opposite Mfs Technology and Blackrock Muniassets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Technology position performs unexpectedly, Blackrock Muniassets 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 Blackrock Muniassets will offset losses from the drop in Blackrock Muniassets' long position.| Mfs Technology vs. Rationalpier 88 Convertible | Mfs Technology vs. Lord Abbett Convertible | Mfs Technology vs. Advent Claymore Convertible | Mfs Technology vs. Allianzgi Convertible Income |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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