Correlation Between Intact Financial and Mfs Diversified
Can any of the company-specific risk be diversified away by investing in both Intact Financial 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 Intact Financial and Mfs Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intact Financial and Mfs Diversified Income, you can compare the effects of market volatilities on Intact Financial 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 Intact Financial with a short position of Mfs Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Mfs Diversified.
Diversification Opportunities for Intact Financial and Mfs Diversified
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Intact and Mfs is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial 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 Intact Financial 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 Intact Financial 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 Intact Financial i.e., Intact Financial and Mfs Diversified go up and down completely randomly.
Pair Corralation between Intact Financial and Mfs Diversified
Assuming the 90 days trading horizon Intact Financial is expected to generate 2.15 times more return on investment than Mfs Diversified. However, Intact Financial is 2.15 times more volatile than Mfs Diversified Income. It trades about 0.04 of its potential returns per unit of risk. Mfs Diversified Income is currently generating about 0.0 per unit of risk. If you would invest 17,888 in Intact Financial on December 29, 2023 and sell it today you would earn a total of 4,161 from holding Intact Financial or generate 23.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Intact Financial vs. MFS DIVERSIFIED INCOME
Performance |
Timeline |
Intact Financial |
Mfs Diversified Income |
Intact Financial and Mfs Diversified Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intact Financial and Mfs Diversified
The main advantage of trading using opposite Intact Financial and Mfs Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial 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.Intact Financial vs. Sprott Inc | Intact Financial vs. Alaris Equity Partners | Intact Financial vs. Trisura Group | Intact Financial vs. Canaccord Genuity Group |
Mfs Diversified vs. Mfs Prudent Investor | Mfs Diversified vs. Mfs Prudent Investor | Mfs Diversified vs. Mfs Prudent Investor | Mfs Diversified 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
CEOs Directory Screen CEOs from public companies around the world |