Correlation Between NYSE Composite and Mfs International
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Mfs International Value, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Mfs International.
Diversification Opportunities for NYSE Composite and Mfs International
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Mfs is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Mfs International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International Value and NYSE Composite 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 NYSE Composite 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 Value has no effect on the direction of NYSE Composite i.e., NYSE Composite and Mfs International go up and down completely randomly.
Pair Corralation between NYSE Composite and Mfs International
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Mfs International. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 1.24 times less risky than Mfs International. The index trades about -0.05 of its potential returns per unit of risk. The Mfs International Value is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,695 in Mfs International Value on November 27, 2024 and sell it today you would earn a total of 92.00 from holding Mfs International Value or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Mfs International Value
Performance |
| Timeline |
NYSE Composite and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Mfs International Value
Pair trading matchups for Mfs International
Pair Trading with NYSE Composite and Mfs International
The main advantage of trading using opposite NYSE Composite and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Unum Group | NYSE Composite vs. Palomar Holdings | NYSE Composite vs. Fidelity National Financial | NYSE Composite vs. ZW Data Action |
| Mfs International vs. Vulcan Value Partners | Mfs International vs. Glg Intl Small | Mfs International vs. Legg Mason Partners | Mfs International vs. Small Pany Growth |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |