Correlation Between Needham Aggressive and Mfs Emerging
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Mfs Emerging 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 Needham Aggressive and Mfs Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and Mfs Emerging Markets, you can compare the effects of market volatilities on Needham Aggressive and Mfs Emerging 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 Needham Aggressive with a short position of Mfs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Mfs Emerging.
Diversification Opportunities for Needham Aggressive and Mfs Emerging
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Needham and Mfs is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Mfs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Emerging Markets and Needham Aggressive 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 Needham Aggressive Growth are associated (or correlated) with Mfs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Emerging Markets has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Mfs Emerging go up and down completely randomly.
Pair Corralation between Needham Aggressive and Mfs Emerging
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 3.38 times more return on investment than Mfs Emerging. However, Needham Aggressive is 3.38 times more volatile than Mfs Emerging Markets. It trades about 0.16 of its potential returns per unit of risk. Mfs Emerging Markets is currently generating about -0.1 per unit of risk. If you would invest 4,841 in Needham Aggressive Growth on August 30, 2024 and sell it today you would earn a total of 299.00 from holding Needham Aggressive Growth or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Mfs Emerging Markets
Performance |
| Timeline |
| Needham Aggressive Growth |
| Mfs Emerging Markets |
Needham Aggressive and Mfs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Mfs Emerging
The main advantage of trading using opposite Needham Aggressive and Mfs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Mfs Emerging 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 Emerging will offset losses from the drop in Mfs Emerging's long position.| Needham Aggressive vs. Putnam Equity Income | Needham Aggressive vs. Putnam Growth Opportunities | Needham Aggressive vs. HUMANA INC | Needham Aggressive vs. Aquagold International |
| Mfs Emerging vs. Ab Impact Municipal | Mfs Emerging vs. Ambrus Core Bond | Mfs Emerging vs. Touchstone Ohio Tax | Mfs Emerging vs. Blrc Sgy Mnp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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