Correlation Between Mfs Mid and American Beacon
Can any of the company-specific risk be diversified away by investing in both Mfs Mid and American Beacon 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 Mid and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Mid Cap and American Beacon Mid Cap, you can compare the effects of market volatilities on Mfs Mid and American Beacon 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 Mid with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Mid and American Beacon.
Diversification Opportunities for Mfs Mid and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mfs and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Mid Cap and American Beacon Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Mid and Mfs Mid 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 Mid Cap are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Mid has no effect on the direction of Mfs Mid i.e., Mfs Mid and American Beacon go up and down completely randomly.
Pair Corralation between Mfs Mid and American Beacon
If you would invest (100.00) in American Beacon Mid Cap on January 20, 2024 and sell it today you would earn a total of 100.00 from holding American Beacon Mid Cap or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Mid Cap vs. American Beacon Mid Cap
Performance |
| Timeline |
| Mfs Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Beacon Mid |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mfs Mid and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Mid and American Beacon
The main advantage of trading using opposite Mfs Mid and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Mid position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Mfs Mid vs. Guidemark Large Cap | Mfs Mid vs. Dunham Large Cap | Mfs Mid vs. Avantis Large Cap | Mfs Mid vs. Smead Value Fund |
| American Beacon vs. Neuberger Berman Income | American Beacon vs. Blackrock High Yield | American Beacon vs. Inverse High Yield | American Beacon vs. Prudential High Yield |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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