Two Equities Correlation Analysis
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BRKBX
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Mfs Blended and NYSE Composite
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and NYSE is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Blended Research and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Mfs Blended 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 Mfs Blended Research are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Mfs Blended i.e., Mfs Blended and NYSE Composite go up and down completely randomly.
Pair Corralation between Mfs Blended and NYSE Composite
Assuming the 90 days horizon Mfs Blended Research is expected to generate 1.1 times more return on investment than NYSE Composite. However, Mfs Blended is 1.1 times more volatile than NYSE Composite. It trades about 0.05 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.11 per unit of risk. If you would invest 1,281 in Mfs Blended Research on January 26, 2024 and sell it today you would earn a total of 9.00 from holding Mfs Blended Research or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Blended Research vs. NYSE Composite
Performance |
| Timeline |
Mfs Blended and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Mfs Blended Research
Pair trading matchups for Mfs Blended
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Mfs Blended and NYSE Composite
The main advantage of trading using opposite Mfs Blended and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Blended position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Mfs Blended vs. Amana Income Fund | Mfs Blended vs. Amana Growth Fund | Mfs Blended vs. Amana Participation Fund | Mfs Blended vs. HUMANA INC |
| NYSE Composite vs. Aduro Clean Technologies | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Advanced Micro Devices | NYSE Composite vs. IPG Photonics |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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