Correlation Between Nuveen Amt-free and MFS Investment
Can any of the company-specific risk be diversified away by investing in both Nuveen Amt-free and MFS Investment 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 Nuveen Amt-free and MFS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Amt Free Municipal and MFS Investment Grade, you can compare the effects of market volatilities on Nuveen Amt-free and MFS Investment 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 Nuveen Amt-free with a short position of MFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Amt-free and MFS Investment.
Diversification Opportunities for Nuveen Amt-free and MFS Investment
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and MFS is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Amt Free Municipal and MFS Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Investment Grade and Nuveen Amt-free 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 Nuveen Amt Free Municipal are associated (or correlated) with MFS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Investment Grade has no effect on the direction of Nuveen Amt-free i.e., Nuveen Amt-free and MFS Investment go up and down completely randomly.
Pair Corralation between Nuveen Amt-free and MFS Investment
Considering the 90-day investment horizon Nuveen Amt Free Municipal is expected to generate 1.16 times more return on investment than MFS Investment. However, Nuveen Amt-free is 1.16 times more volatile than MFS Investment Grade. It trades about 0.18 of its potential returns per unit of risk. MFS Investment Grade is currently generating about 0.18 per unit of risk. If you would invest 1,062 in Nuveen Amt Free Municipal on September 2, 2024 and sell it today you would earn a total of 127.00 from holding Nuveen Amt Free Municipal or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Amt Free Municipal vs. MFS Investment Grade
Performance |
| Timeline |
| Nuveen Amt Free |
| MFS Investment Grade |
Nuveen Amt-free and MFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Amt-free and MFS Investment
The main advantage of trading using opposite Nuveen Amt-free and MFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Amt-free position performs unexpectedly, MFS Investment 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 Investment will offset losses from the drop in MFS Investment's long position.| Nuveen Amt-free vs. MFS Investment Grade | Nuveen Amt-free vs. Eaton Vance Municipal | Nuveen Amt-free vs. DTF Tax Free | Nuveen Amt-free vs. Aquagold International |
| MFS Investment vs. Invesco High Income | MFS Investment vs. Eaton Vance National | MFS Investment vs. Nuveen California Select | MFS Investment vs. Federated Premier Municipal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |