Correlation Between Nuveen New and MFS Investment
Can any of the company-specific risk be diversified away by investing in both Nuveen New 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 New 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 New York and MFS Investment Grade, you can compare the effects of market volatilities on Nuveen New 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 New with a short position of MFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen New and MFS Investment.
Diversification Opportunities for Nuveen New and MFS Investment
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and MFS is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen New York 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 New 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 New York 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 New i.e., Nuveen New and MFS Investment go up and down completely randomly.
Pair Corralation between Nuveen New and MFS Investment
Considering the 90-day investment horizon Nuveen New is expected to generate 1.54 times less return on investment than MFS Investment. In addition to that, Nuveen New is 1.13 times more volatile than MFS Investment Grade. It trades about 0.03 of its total potential returns per unit of risk. MFS Investment Grade is currently generating about 0.06 per unit of volatility. If you would invest 682.00 in MFS Investment Grade on September 3, 2024 and sell it today you would earn a total of 142.00 from holding MFS Investment Grade or generate 20.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen New York vs. MFS Investment Grade
Performance |
| Timeline |
| Nuveen New York |
| MFS Investment Grade |
Nuveen New and MFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen New and MFS Investment
The main advantage of trading using opposite Nuveen New and MFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen New 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 New vs. Western Asset Municipal | Nuveen New vs. Nuveen Massachusetts Quality | Nuveen New vs. Fiera Capital | Nuveen New vs. European Equity Closed |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| CEOs Directory Screen CEOs from public companies around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |