Correlation Between NYSE Composite and Mfs Research
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Mfs Research 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 Research 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 Research Fund, you can compare the effects of market volatilities on NYSE Composite and Mfs Research 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 Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Mfs Research.
Diversification Opportunities for NYSE Composite and Mfs Research
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Mfs is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Mfs Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research 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 Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research has no effect on the direction of NYSE Composite i.e., NYSE Composite and Mfs Research go up and down completely randomly.
Pair Corralation between NYSE Composite and Mfs Research
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.79 times more return on investment than Mfs Research. However, NYSE Composite is 1.26 times less risky than Mfs Research. It trades about 0.26 of its potential returns per unit of risk. Mfs Research Fund is currently generating about 0.17 per unit of risk. If you would invest 1,945,669 in NYSE Composite on August 30, 2024 and sell it today you would earn a total of 75,313 from holding NYSE Composite or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Mfs Research Fund
Performance |
| Timeline |
NYSE Composite and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Mfs Research Fund
Pair trading matchups for Mfs Research
Pair Trading with NYSE Composite and Mfs Research
The main advantage of trading using opposite NYSE Composite and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Mfs Research 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 Research will offset losses from the drop in Mfs Research's long position.| NYSE Composite vs. Delek Drilling | NYSE Composite vs. Helmerich and Payne | NYSE Composite vs. Waste Management | NYSE Composite vs. US Global Investors |
| Mfs Research vs. Franklin Adjustable Government | Mfs Research vs. Lord Abbett Government | Mfs Research vs. John Hancock Government | Mfs Research vs. Dunham Porategovernment Bond |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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