Correlation Between MFS High and Kayne Anderson

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

By analyzing existing cross correlation between MFS High Income and Kayne Anderson Midstreamenergy, you can compare the effects of market volatilities on MFS High and Kayne Anderson 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 High with a short position of Kayne Anderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS High and Kayne Anderson.

Diversification Opportunities for MFS High and Kayne Anderson

0.0

Correlation Coefficient

MFS High  Kayne Anderson

Pay attention - limited upside

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

Pair Corralation between MFS High and Kayne Anderson

If you would invest  373.00  in MFS High Income on December 2, 2024 and sell it today you would earn a total of  9.00  from holding MFS High Income or generate 2.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

MFS High Income  vs.  Kayne Anderson Midstreamenergy

MFS High Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days MFS High Income has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, MFS High is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Kayne Anderson Midst

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kayne Anderson Midstreamenergy has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable primary indicators, Kayne Anderson is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MFS High and Kayne Anderson

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

The idea behind MFS High Income and Kayne Anderson Midstreamenergy 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.