Correlation Between Dreyfus/standish and Mfs Variable
Can any of the company-specific risk be diversified away by investing in both Dreyfus/standish and Mfs Variable 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 Dreyfus/standish and Mfs Variable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfusstandish Global Fixed and Mfs Variable Insurance, you can compare the effects of market volatilities on Dreyfus/standish and Mfs Variable 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 Dreyfus/standish with a short position of Mfs Variable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus/standish and Mfs Variable.
Diversification Opportunities for Dreyfus/standish and Mfs Variable
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dreyfus/standish and Mfs is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Mfs Variable Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Variable Insurance and Dreyfus/standish 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 Dreyfusstandish Global Fixed are associated (or correlated) with Mfs Variable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Variable Insurance has no effect on the direction of Dreyfus/standish i.e., Dreyfus/standish and Mfs Variable go up and down completely randomly.
Pair Corralation between Dreyfus/standish and Mfs Variable
Assuming the 90 days horizon Dreyfus/standish is expected to generate 3.04 times less return on investment than Mfs Variable. But when comparing it to its historical volatility, Dreyfusstandish Global Fixed is 5.06 times less risky than Mfs Variable. It trades about 0.11 of its potential returns per unit of risk. Mfs Variable Insurance is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,519 in Mfs Variable Insurance on November 3, 2024 and sell it today you would earn a total of 54.00 from holding Mfs Variable Insurance or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Mfs Variable Insurance
Performance |
| Timeline |
| Dreyfusstandish Global |
| Mfs Variable Insurance |
Dreyfus/standish and Mfs Variable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus/standish and Mfs Variable
The main advantage of trading using opposite Dreyfus/standish and Mfs Variable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus/standish position performs unexpectedly, Mfs Variable 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 Variable will offset losses from the drop in Mfs Variable's long position.| Dreyfus/standish vs. Angel Oak Financial | Dreyfus/standish vs. Touchstone Ultra Short | Dreyfus/standish vs. Ab Bond Inflation | Dreyfus/standish vs. Artisan High Income |
| Mfs Variable vs. Columbia Convertible Securities | Mfs Variable vs. Virtus Convertible | Mfs Variable vs. Putnam Convertible Securities | Mfs Variable vs. Advent Claymore 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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