Correlation Between Tiaa Cref and Mfs Maryland
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and Mfs Maryland 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 Tiaa Cref and Mfs Maryland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Smallmid Cap Equity and Mfs Maryland Municipal, you can compare the effects of market volatilities on Tiaa Cref and Mfs Maryland 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 Tiaa Cref with a short position of Mfs Maryland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Mfs Maryland.
Diversification Opportunities for Tiaa Cref and Mfs Maryland
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tiaa and Mfs is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Smallmid Cap Equity and Mfs Maryland Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Maryland Municipal and Tiaa Cref 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 Tiaa Cref Smallmid Cap Equity are associated (or correlated) with Mfs Maryland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Maryland Municipal has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Mfs Maryland go up and down completely randomly.
Pair Corralation between Tiaa Cref and Mfs Maryland
Assuming the 90 days horizon Tiaa Cref Smallmid Cap Equity is expected to generate 4.52 times more return on investment than Mfs Maryland. However, Tiaa Cref is 4.52 times more volatile than Mfs Maryland Municipal. It trades about 0.08 of its potential returns per unit of risk. Mfs Maryland Municipal is currently generating about 0.06 per unit of risk. If you would invest 1,193 in Tiaa Cref Smallmid Cap Equity on September 4, 2024 and sell it today you would earn a total of 592.00 from holding Tiaa Cref Smallmid Cap Equity or generate 49.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Smallmid Cap Equity vs. Mfs Maryland Municipal
Performance |
| Timeline |
| Tiaa Cref Smallmid |
| Mfs Maryland Municipal |
Tiaa Cref and Mfs Maryland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and Mfs Maryland
The main advantage of trading using opposite Tiaa Cref and Mfs Maryland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, Mfs Maryland 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 Maryland will offset losses from the drop in Mfs Maryland's long position.| Tiaa Cref vs. Gmo High Yield | Tiaa Cref vs. Artisan High Income | Tiaa Cref vs. Ab Global Risk | Tiaa Cref vs. Guggenheim High Yield |
| Mfs Maryland vs. Mfs Prudent Investor | Mfs Maryland vs. Mfs Prudent Investor | Mfs Maryland vs. Mfs Prudent Investor | Mfs Maryland 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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