Correlation Between ATT and Mfs Series
Can any of the company-specific risk be diversified away by investing in both ATT and Mfs Series 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 ATT and Mfs Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Mfs Series Trust, you can compare the effects of market volatilities on ATT and Mfs Series 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 ATT with a short position of Mfs Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Mfs Series.
Diversification Opportunities for ATT and Mfs Series
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ATT and Mfs is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Mfs Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Series Trust and ATT 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 ATT Inc are associated (or correlated) with Mfs Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Series Trust has no effect on the direction of ATT i.e., ATT and Mfs Series go up and down completely randomly.
Pair Corralation between ATT and Mfs Series
If you would invest 2,211 in ATT Inc on August 29, 2024 and sell it today you would earn a total of 116.50 from holding ATT Inc or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ATT Inc vs. Mfs Series Trust
Performance |
| Timeline |
| ATT Inc |
| Mfs Series Trust |
ATT and Mfs Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Mfs Series
The main advantage of trading using opposite ATT and Mfs Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Mfs Series 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 Series will offset losses from the drop in Mfs Series' long position.The idea behind ATT Inc and Mfs Series Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard 500 Index | Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard Total Stock |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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