Correlation Between Bank of New York and Mfs Blended
Can any of the company-specific risk be diversified away by investing in both Bank of New York and Mfs Blended 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 Bank of New York and Mfs Blended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of New and Mfs Blended Research, you can compare the effects of market volatilities on Bank of New York and Mfs Blended 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 Bank of New York with a short position of Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and Mfs Blended.
Diversification Opportunities for Bank of New York and Mfs Blended
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Mfs is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bank of New and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research and Bank of New York 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 Bank of New are associated (or correlated) with Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of Bank of New York i.e., Bank of New York and Mfs Blended go up and down completely randomly.
Pair Corralation between Bank of New York and Mfs Blended
Allowing for the 90-day total investment horizon Bank of New York is expected to generate 1.46 times less return on investment than Mfs Blended. In addition to that, Bank of New York is 1.43 times more volatile than Mfs Blended Research. It trades about 0.08 of its total potential returns per unit of risk. Mfs Blended Research is currently generating about 0.16 per unit of volatility. If you would invest 1,202 in Mfs Blended Research on January 26, 2024 and sell it today you would earn a total of 88.00 from holding Mfs Blended Research or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of New vs. Mfs Blended Research
Performance |
| Timeline |
| Bank of New York |
| Mfs Blended Research |
Bank of New York and Mfs Blended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York and Mfs Blended
The main advantage of trading using opposite Bank of New York and Mfs Blended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, Mfs Blended 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 Blended will offset losses from the drop in Mfs Blended's long position.| Bank of New York vs. Federated Premier Municipal | Bank of New York vs. Blackrock Muniyield | Bank of New York vs. NXG NextGen Infrastructure | Bank of New York vs. Brightsphere Investment Group |
| Mfs Blended vs. Amana Income Fund | Mfs Blended vs. Amana Growth Fund | Mfs Blended vs. Amana Participation Fund | Mfs Blended vs. HUMANA INC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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