Correlation Between Mfs Mid and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Mfs Mid and Eagle Mid 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 Mid and Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Mid Cap and Eagle Mid Cap, you can compare the effects of market volatilities on Mfs Mid and Eagle Mid 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 Mid with a short position of Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Mid and Eagle Mid.
Diversification Opportunities for Mfs Mid and Eagle Mid
Almost no diversification
The 3 months correlation between Mfs and EAGLE is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Mid Cap and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap and Mfs Mid 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 Mid Cap are associated (or correlated) with Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Mfs Mid i.e., Mfs Mid and Eagle Mid go up and down completely randomly.
Pair Corralation between Mfs Mid and Eagle Mid
Assuming the 90 days horizon Mfs Mid Cap is expected to generate 0.66 times more return on investment than Eagle Mid. However, Mfs Mid Cap is 1.5 times less risky than Eagle Mid. It trades about 0.07 of its potential returns per unit of risk. Eagle Mid Cap is currently generating about 0.04 per unit of risk. If you would invest 2,765 in Mfs Mid Cap on August 29, 2024 and sell it today you would earn a total of 1,012 from holding Mfs Mid Cap or generate 36.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Mid Cap vs. Eagle Mid Cap
Performance |
| Timeline |
| Mfs Mid Cap |
| Eagle Mid Cap |
Mfs Mid and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Mid and Eagle Mid
The main advantage of trading using opposite Mfs Mid and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Mid position performs unexpectedly, Eagle Mid 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 Eagle Mid will offset losses from the drop in Eagle Mid's long position.| Mfs Mid vs. Mfs Mid Cap | Mfs Mid vs. Mfs Value Fund | Mfs Mid vs. Massmutual Select Mid | Mfs Mid vs. Mfs Growth Fund |
| Eagle Mid vs. Eagle Small Cap | Eagle Mid vs. Eagle Growth Income | Eagle Mid vs. Eagle Capital Appreciation | Eagle Mid vs. Victory Sycamore Established |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |