Correlation Between Optibase and Mfs Mid

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Can any of the company-specific risk be diversified away by investing in both Optibase and Mfs Mid 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 Optibase and Mfs Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optibase and Mfs Mid Cap, you can compare the effects of market volatilities on Optibase and Mfs Mid 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 Optibase with a short position of Mfs Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optibase and Mfs Mid.

Diversification Opportunities for Optibase and Mfs Mid

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  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Optibase and Mfs Mid

If you would invest  2,722  in Mfs Mid Cap on December 29, 2023 and sell it today you would earn a total of  307.00  from holding Mfs Mid Cap or generate 11.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Optibase  vs.  MFS MID CAP

 Performance 
       Timeline  
Optibase 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Optibase has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Optibase is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Mfs Mid Cap 

Risk-Adjusted Performance

14 of 100

 
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Good
Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Mid Cap are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly fragile basic indicators, Mfs Mid may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Optibase and Mfs Mid Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Optibase and Mfs Mid

The main advantage of trading using opposite Optibase and Mfs Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optibase position performs unexpectedly, Mfs Mid 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 Mid will offset losses from the drop in Mfs Mid's long position.
The idea behind Optibase and Mfs Mid Cap 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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