Correlation Between MFS Special and Voya Asia

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

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

Diversification Opportunities for MFS Special and Voya Asia

-0.78

Correlation Coefficient

MFS Special  Voya Asia

Pay attention - limited upside

The 3 months correlation between MFS and Voya is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding MFS Special Value and Voya Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Asia Pacific and MFS Special 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 Special Value are associated (or correlated) with Voya Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Asia Pacific has no effect on the direction of MFS Special i.e., MFS Special and Voya Asia go up and down completely randomly.

Pair Corralation between MFS Special and Voya Asia

If you would invest (100.00) in MFS Special Value on September 4, 2024 and sell it today you would earn a total of  100.00  from holding MFS Special Value or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

MFS Special Value  vs.  Voya Asia Pacific

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.

Voya Asia Pacific

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya Asia Pacific has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound basic indicators, Voya Asia is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with MFS Special and Voya Asia

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

The idea behind MFS Special Value and Voya Asia Pacific 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.