Correlation Between Ameritrans Capital and MFS Special

Can any of the company-specific risk be diversified away by investing in both Ameritrans Capital and MFS Special 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 Ameritrans Capital and MFS Special into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ameritrans Capital Corp and MFS Special Value, you can compare the effects of market volatilities on Ameritrans Capital and MFS Special 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 Ameritrans Capital with a short position of MFS Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameritrans Capital and MFS Special.

Diversification Opportunities for Ameritrans Capital and MFS Special

0.0

Correlation Coefficient

Ameritrans Capital  MFS Special

Pay attention - limited upside

The 3 months correlation between Ameritrans and MFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ameritrans Capital Corp and MFS Special Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Special Value and Ameritrans Capital 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 Ameritrans Capital Corp are associated (or correlated) with MFS Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Special Value has no effect on the direction of Ameritrans Capital i.e., Ameritrans Capital and MFS Special go up and down completely randomly.

Pair Corralation between Ameritrans Capital and MFS Special

Assuming the 90 days horizon Ameritrans Capital Corp is expected to under-perform the MFS Special. In addition to that, Ameritrans Capital is 4.0 times more volatile than MFS Special Value. It trades about -0.04 of its total potential returns per unit of risk. MFS Special Value is currently generating about -0.04 per unit of volatility. If you would invest  433.00  in MFS Special Value on October 26, 2024 and sell it today you would lose (21.00) from holding MFS Special Value or give up 4.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	23.49%
Values	Daily Returns

Ameritrans Capital Corp  vs.  MFS Special Value

Ameritrans Capital Corp

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Ameritrans Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Preferred Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

MFS Special Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MFS Special Value has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, MFS Special is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Ameritrans Capital and MFS Special

The main advantage of trading using opposite Ameritrans Capital and MFS Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameritrans Capital position performs unexpectedly, MFS Special 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 Special will offset losses from the drop in MFS Special's long position.

The idea behind Ameritrans Capital Corp and MFS Special Value pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.