Correlation Between NYSE Composite and Mfs Intrinsic
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Mfs Intrinsic 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 Intrinsic 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 Intrinsic Value, you can compare the effects of market volatilities on NYSE Composite and Mfs Intrinsic 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 Intrinsic. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Mfs Intrinsic.
Diversification Opportunities for NYSE Composite and Mfs Intrinsic
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Mfs is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Mfs Intrinsic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Intrinsic 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 Intrinsic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Intrinsic Value has no effect on the direction of NYSE Composite i.e., NYSE Composite and Mfs Intrinsic go up and down completely randomly.
Pair Corralation between NYSE Composite and Mfs Intrinsic
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.81 times more return on investment than Mfs Intrinsic. However, NYSE Composite is 1.24 times less risky than Mfs Intrinsic. It trades about 0.14 of its potential returns per unit of risk. Mfs Intrinsic Value is currently generating about 0.09 per unit of risk. If you would invest 1,800,696 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 226,508 from holding NYSE Composite or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
NYSE Composite vs. Mfs Intrinsic Value
Performance |
| Timeline |
NYSE Composite and Mfs Intrinsic Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Mfs Intrinsic Value
Pair trading matchups for Mfs Intrinsic
Pair Trading with NYSE Composite and Mfs Intrinsic
The main advantage of trading using opposite NYSE Composite and Mfs Intrinsic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Mfs Intrinsic 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 Intrinsic will offset losses from the drop in Mfs Intrinsic's long position.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Mfs Intrinsic vs. Advent Claymore Convertible | Mfs Intrinsic vs. Calamos Dynamic Convertible | Mfs Intrinsic vs. Columbia Vertible Securities | Mfs Intrinsic vs. Fidelity Sai Convertible |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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