Correlation Between Cref Money and Mfs International
Can any of the company-specific risk be diversified away by investing in both Cref Money 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 Cref Money and Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and Mfs International New, you can compare the effects of market volatilities on Cref Money 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 Cref Money with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Mfs International.
Diversification Opportunities for Cref Money and Mfs International
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cref and Mfs is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Mfs International New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International New and Cref Money 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 Cref Money Market 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 New has no effect on the direction of Cref Money i.e., Cref Money and Mfs International go up and down completely randomly.
Pair Corralation between Cref Money and Mfs International
Assuming the 90 days trading horizon Cref Money Market is expected to generate 0.03 times more return on investment than Mfs International. However, Cref Money Market is 37.95 times less risky than Mfs International. It trades about 1.02 of its potential returns per unit of risk. Mfs International New is currently generating about -0.04 per unit of risk. If you would invest 2,961 in Cref Money Market on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Cref Money Market or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Money Market vs. Mfs International New
Performance |
| Timeline |
| Cref Money Market |
| Mfs International New |
Cref Money and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and Mfs International
The main advantage of trading using opposite Cref Money and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money 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.| Cref Money vs. Great West Real Estate | Cref Money vs. Guggenheim Risk Managed | Cref Money vs. Deutsche Real Estate | Cref Money vs. Virtus Real Estate |
| Mfs International vs. T Rowe Price | Mfs International vs. Ashmore Emerging Markets | Mfs International vs. Jpmorgan Trust I | Mfs International vs. Cref Money Market |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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