Correlation Between Siit Equity and Mfs Total
Can any of the company-specific risk be diversified away by investing in both Siit Equity and Mfs Total 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 Siit Equity and Mfs Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Equity Factor and Mfs Total Return, you can compare the effects of market volatilities on Siit Equity and Mfs Total 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 Siit Equity with a short position of Mfs Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Equity and Mfs Total.
Diversification Opportunities for Siit Equity and Mfs Total
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Mfs is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Siit Equity Factor and Mfs Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Total Return and Siit Equity 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 Siit Equity Factor are associated (or correlated) with Mfs Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Total Return has no effect on the direction of Siit Equity i.e., Siit Equity and Mfs Total go up and down completely randomly.
Pair Corralation between Siit Equity and Mfs Total
Assuming the 90 days horizon Siit Equity Factor is expected to generate 2.35 times more return on investment than Mfs Total. However, Siit Equity is 2.35 times more volatile than Mfs Total Return. It trades about 0.18 of its potential returns per unit of risk. Mfs Total Return is currently generating about 0.08 per unit of risk. If you would invest 1,461 in Siit Equity Factor on November 4, 2024 and sell it today you would earn a total of 35.00 from holding Siit Equity Factor or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Equity Factor vs. Mfs Total Return
Performance |
| Timeline |
| Siit Equity Factor |
| Mfs Total Return |
Siit Equity and Mfs Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Equity and Mfs Total
The main advantage of trading using opposite Siit Equity and Mfs Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Equity position performs unexpectedly, Mfs Total 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 Total will offset losses from the drop in Mfs Total's long position.| Siit Equity vs. Oklahoma Municipal Fund | Siit Equity vs. Baird Quality Intermediate | Siit Equity vs. Franklin Adjustable Government | Siit Equity vs. Morningstar Municipal Bond |
| Mfs Total vs. Mfs Prudent Investor | Mfs Total vs. Mfs Prudent Investor | Mfs Total vs. Mfs Prudent Investor | Mfs Total vs. Mfs Prudent Investor |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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