Correlation Between Great-west Loomis and Mfs International
Can any of the company-specific risk be diversified away by investing in both Great-west Loomis and Mfs International 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 Great-west Loomis and Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Loomis Sayles and Mfs International New, you can compare the effects of market volatilities on Great-west Loomis and Mfs International 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 Great-west Loomis with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Loomis and Mfs International.
Diversification Opportunities for Great-west Loomis and Mfs International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Great-west and Mfs is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Great West Loomis Sayles and Mfs International New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International New and Great-west Loomis 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 Great West Loomis Sayles are associated (or correlated) with Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International New has no effect on the direction of Great-west Loomis i.e., Great-west Loomis and Mfs International go up and down completely randomly.
Pair Corralation between Great-west Loomis and Mfs International
Assuming the 90 days horizon Great West Loomis Sayles is expected to generate 2.59 times more return on investment than Mfs International. However, Great-west Loomis is 2.59 times more volatile than Mfs International New. It trades about 0.29 of its potential returns per unit of risk. Mfs International New is currently generating about -0.04 per unit of risk. If you would invest 3,782 in Great West Loomis Sayles on September 1, 2024 and sell it today you would earn a total of 396.00 from holding Great West Loomis Sayles or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Loomis Sayles vs. Mfs International New
Performance |
| Timeline |
| Great West Loomis |
| Mfs International New |
Great-west Loomis and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Loomis and Mfs International
The main advantage of trading using opposite Great-west Loomis and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Loomis position performs unexpectedly, Mfs International 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 International will offset losses from the drop in Mfs International's long position.| Great-west Loomis vs. Gabelli Gold Fund | Great-west Loomis vs. Global Gold Fund | Great-west Loomis vs. Invesco Gold Special | Great-west Loomis vs. International Investors Gold |
| Mfs International vs. T Rowe Price | Mfs International vs. Ashmore Emerging Markets | Mfs International vs. Jpmorgan Trust I | Mfs International vs. Cref Money Market |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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