Correlation Between Siit Global and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Siit Global and Mfs Research 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 Global and Mfs Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Global Managed and Mfs Research Fund, you can compare the effects of market volatilities on Siit Global and Mfs Research 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 Global with a short position of Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Global and Mfs Research.
Diversification Opportunities for Siit Global and Mfs Research
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and Mfs is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Mfs Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research and Siit Global 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 Global Managed are associated (or correlated) with Mfs Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research has no effect on the direction of Siit Global i.e., Siit Global and Mfs Research go up and down completely randomly.
Pair Corralation between Siit Global and Mfs Research
Assuming the 90 days horizon Siit Global Managed is expected to generate 0.59 times more return on investment than Mfs Research. However, Siit Global Managed is 1.69 times less risky than Mfs Research. It trades about 0.13 of its potential returns per unit of risk. Mfs Research Fund is currently generating about 0.07 per unit of risk. If you would invest 1,107 in Siit Global Managed on October 22, 2024 and sell it today you would earn a total of 12.00 from holding Siit Global Managed or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Global Managed vs. Mfs Research Fund
Performance |
| Timeline |
| Siit Global Managed |
| Mfs Research |
Siit Global and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Global and Mfs Research
The main advantage of trading using opposite Siit Global and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Global position performs unexpectedly, Mfs Research 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 Research will offset losses from the drop in Mfs Research's long position.| Siit Global vs. Forum Real Estate | Siit Global vs. Simt Real Estate | Siit Global vs. American Century Real | Siit Global vs. Short Real Estate |
| Mfs Research vs. Lord Abbett Diversified | Mfs Research vs. Putnam Diversified Income | Mfs Research vs. Global Diversified Income | Mfs Research vs. Guggenheim Diversified Income |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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