Correlation Between Cohen Steers and MFS Investment
Can any of the company-specific risk be diversified away by investing in both Cohen Steers 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 Cohen Steers and MFS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Qualityome and MFS Investment Grade, you can compare the effects of market volatilities on Cohen Steers 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 Cohen Steers with a short position of MFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and MFS Investment.
Diversification Opportunities for Cohen Steers and MFS Investment
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cohen and MFS is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Qualityome 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 Cohen Steers 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 Cohen Steers Qualityome 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 Cohen Steers i.e., Cohen Steers and MFS Investment go up and down completely randomly.
Pair Corralation between Cohen Steers and MFS Investment
Considering the 90-day investment horizon Cohen Steers Qualityome is expected to under-perform the MFS Investment. In addition to that, Cohen Steers is 2.86 times more volatile than MFS Investment Grade. It trades about -0.01 of its total potential returns per unit of risk. MFS Investment Grade is currently generating about 0.05 per unit of volatility. If you would invest 805.00 in MFS Investment Grade on August 24, 2024 and sell it today you would earn a total of 5.00 from holding MFS Investment Grade or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Qualityome vs. MFS Investment Grade
Performance |
| Timeline |
| Cohen Steers Qualityome |
| MFS Investment Grade |
Cohen Steers and MFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and MFS Investment
The main advantage of trading using opposite Cohen Steers and MFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers 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.| Cohen Steers vs. MFS Investment Grade | Cohen Steers vs. Eaton Vance National | Cohen Steers vs. Blackrock Muniyield Quality | Cohen Steers vs. Munivest Fund |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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