Correlation Between Siit High and Mfs Municipal
Can any of the company-specific risk be diversified away by investing in both Siit High and Mfs Municipal 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 High and Mfs Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Mfs Municipal Limited, you can compare the effects of market volatilities on Siit High and Mfs Municipal 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 High with a short position of Mfs Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Mfs Municipal.
Diversification Opportunities for Siit High and Mfs Municipal
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Mfs is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Mfs Municipal Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Municipal Limited and Siit High 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 High Yield are associated (or correlated) with Mfs Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Municipal Limited has no effect on the direction of Siit High i.e., Siit High and Mfs Municipal go up and down completely randomly.
Pair Corralation between Siit High and Mfs Municipal
Assuming the 90 days horizon Siit High Yield is expected to generate 1.81 times more return on investment than Mfs Municipal. However, Siit High is 1.81 times more volatile than Mfs Municipal Limited. It trades about 0.22 of its potential returns per unit of risk. Mfs Municipal Limited is currently generating about 0.16 per unit of risk. If you would invest 676.00 in Siit High Yield on September 5, 2024 and sell it today you would earn a total of 42.00 from holding Siit High Yield or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Siit High Yield vs. Mfs Municipal Limited
Performance |
| Timeline |
| Siit High Yield |
| Mfs Municipal Limited |
Siit High and Mfs Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Mfs Municipal
The main advantage of trading using opposite Siit High and Mfs Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Mfs Municipal 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 Municipal will offset losses from the drop in Mfs Municipal's long position.| Siit High vs. Goldman Sachs High | Siit High vs. Guggenheim High Yield | Siit High vs. Ab High Income | Siit High vs. Lgm Risk Managed |
| Mfs Municipal vs. Siit High Yield | Mfs Municipal vs. Blackrock High Yield | Mfs Municipal vs. Lord Abbett High | Mfs Municipal vs. Alpine High Yield |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |