Correlation Between Yamana Gold and Mfs Diversified

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Can any of the company-specific risk be diversified away by investing in both Yamana Gold and Mfs Diversified 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 Yamana Gold and Mfs Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yamana Gold and Mfs Diversified Income, you can compare the effects of market volatilities on Yamana Gold and Mfs Diversified 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 Yamana Gold with a short position of Mfs Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yamana Gold and Mfs Diversified.

Diversification Opportunities for Yamana Gold and Mfs Diversified

-0.12
  Correlation Coefficient

Good diversification

The 3 months correlation between Yamana and Mfs is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Yamana Gold and MFS DIVERSIFIED INCOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Diversified Income and Yamana Gold 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 Yamana Gold are associated (or correlated) with Mfs Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Diversified Income has no effect on the direction of Yamana Gold i.e., Yamana Gold and Mfs Diversified go up and down completely randomly.

Pair Corralation between Yamana Gold and Mfs Diversified

If you would invest  1,181  in Mfs Diversified Income on December 29, 2023 and sell it today you would earn a total of  27.00  from holding Mfs Diversified Income or generate 2.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy4.35%
ValuesDaily Returns

Yamana Gold  vs.  MFS DIVERSIFIED INCOME

 Performance 
       Timeline  
Yamana Gold 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Yamana Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Yamana Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Mfs Diversified Income 

Risk-Adjusted Performance

4 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Diversified Income are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mfs Diversified is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Yamana Gold and Mfs Diversified Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Yamana Gold and Mfs Diversified

The main advantage of trading using opposite Yamana Gold and Mfs Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yamana Gold position performs unexpectedly, Mfs Diversified 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 Diversified will offset losses from the drop in Mfs Diversified's long position.
The idea behind Yamana Gold and Mfs Diversified Income 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.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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