Correlation Between Bitcoin and Mfs Research

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

By analyzing existing cross correlation between Bitcoin and Mfs Research International, you can compare the effects of market volatilities on Bitcoin and Mfs Research 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 Bitcoin with a short position of Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Mfs Research.

Diversification Opportunities for Bitcoin and Mfs Research

-0.5

Correlation Coefficient

Bitcoin  Mfs Research

Very good diversification

The 3 months correlation between Bitcoin and Mfs is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Mfs Research International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research Interna and Bitcoin 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 Bitcoin are associated (or correlated) with Mfs Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research Interna has no effect on the direction of Bitcoin i.e., Bitcoin and Mfs Research go up and down completely randomly.

Pair Corralation between Bitcoin and Mfs Research

Assuming the 90 days trading horizon Bitcoin is expected to under-perform the Mfs Research. In addition to that, Bitcoin is 2.95 times more volatile than Mfs Research International. It trades about -0.09 of its total potential returns per unit of risk. Mfs Research International is currently generating about 0.18 per unit of volatility. If you would invest  2,234  in Mfs Research International on December 20, 2024 and sell it today you would earn a total of  199.00  from holding Mfs Research International or generate 8.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.65%
Values	Daily Returns

Bitcoin  vs.  Mfs Research International

Bitcoin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bitcoin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Bitcoin shareholders.

Mfs Research Interna

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Research International are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mfs Research may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Bitcoin and Mfs Research

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

The idea behind Bitcoin and Mfs Research International 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.