Two Equities Correlation Analysis
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EMLNX
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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 Emerging and NYSE Composite
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mfs and NYSE is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Emerging Markets and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Mfs Emerging 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 Emerging Markets 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 Emerging i.e., Mfs Emerging and NYSE Composite go up and down completely randomly.
Pair Corralation between Mfs Emerging and NYSE Composite
Assuming the 90 days horizon Mfs Emerging is expected to generate 1.47 times less return on investment than NYSE Composite. But when comparing it to its historical volatility, Mfs Emerging Markets is 1.9 times less risky than NYSE Composite. It trades about 0.03 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,574,182 in NYSE Composite on January 17, 2024 and sell it today you would earn a total of 176,511 from holding NYSE Composite or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Emerging Markets vs. NYSE Composite
Performance |
| Timeline |
Mfs Emerging and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Mfs Emerging Markets
Pair trading matchups for Mfs Emerging
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Mfs Emerging and NYSE Composite
The main advantage of trading using opposite Mfs Emerging and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Emerging 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 Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor |
| NYSE Composite vs. Getty Images Holdings | NYSE Composite vs. Wingstop | NYSE Composite vs. Cardinal Health | NYSE Composite vs. Radcom |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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