Correlation Between Mfs Value and ATT
Can any of the company-specific risk be diversified away by investing in both Mfs Value and ATT 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 Mfs Value and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Value Fund and ATT Inc, you can compare the effects of market volatilities on Mfs Value and ATT 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 Mfs Value with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and ATT.
Diversification Opportunities for Mfs Value and ATT
Weak diversification
The 3 months correlation between Mfs and ATT is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Mfs Value 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 Value Fund are associated (or correlated) with ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of Mfs Value i.e., Mfs Value and ATT go up and down completely randomly.
Pair Corralation between Mfs Value and ATT
Assuming the 90 days horizon Mfs Value Fund is expected to generate 0.47 times more return on investment than ATT. However, Mfs Value Fund is 2.12 times less risky than ATT. It trades about 0.17 of its potential returns per unit of risk. ATT Inc is currently generating about 0.07 per unit of risk. If you would invest 4,291 in Mfs Value Fund on January 17, 2024 and sell it today you would earn a total of 585.00 from holding Mfs Value Fund or generate 13.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Value Fund vs. ATT Inc
Performance |
| Timeline |
| Mfs Value Fund |
| ATT Inc |
Mfs Value and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Value and ATT
The main advantage of trading using opposite Mfs Value and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT's long position.| Mfs Value vs. Mfs Prudent Investor | Mfs Value vs. Mfs Prudent Investor | Mfs Value vs. Mfs Prudent Investor | Mfs Value vs. Mfs Prudent Investor |
| ATT vs. Aquagold International | ATT vs. Thrivent High Yield | ATT vs. Morningstar Unconstrained Allocation | ATT vs. Via Renewables |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |