Correlation Between Stone Harbor and MFS Investment
Can any of the company-specific risk be diversified away by investing in both Stone Harbor and MFS Investment 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 Stone Harbor and MFS Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Harbor Emerging and MFS Investment Grade, you can compare the effects of market volatilities on Stone Harbor and MFS Investment 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 Stone Harbor with a short position of MFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Harbor and MFS Investment.
Diversification Opportunities for Stone Harbor and MFS Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stone and MFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stone Harbor Emerging and MFS Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Investment Grade and Stone Harbor 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 Stone Harbor Emerging are associated (or correlated) with MFS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Investment Grade has no effect on the direction of Stone Harbor i.e., Stone Harbor and MFS Investment go up and down completely randomly.
Pair Corralation between Stone Harbor and MFS Investment
If you would invest 782.00 in MFS Investment Grade on December 26, 2024 and sell it today you would earn a total of 15.00 from holding MFS Investment Grade or generate 1.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Stone Harbor Emerging vs. MFS Investment Grade
Performance |
Timeline |
Stone Harbor Emerging |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
MFS Investment Grade |
Stone Harbor and MFS Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stone Harbor and MFS Investment
The main advantage of trading using opposite Stone Harbor and MFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Harbor position performs unexpectedly, MFS Investment 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 Investment will offset losses from the drop in MFS Investment's long position.Stone Harbor vs. Aberdeen Global IF | Stone Harbor vs. Clough Global Opportunities | Stone Harbor vs. RiverNorthDoubleLine Strategic Opportunity | Stone Harbor vs. Cornerstone Strategic Return |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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