Correlation Between MFS High and Invesco High

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

By analyzing existing cross correlation between MFS High Yield and Invesco High Income, you can compare the effects of market volatilities on MFS High and Invesco High 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 Invesco High. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS High and Invesco High.

Diversification Opportunities for MFS High and Invesco High

0.05

Correlation Coefficient

MFS High  Invesco High

Significant diversification

The 3 months correlation between MFS and Invesco is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding MFS High Yield and Invesco High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco High Income 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 Yield are associated (or correlated) with Invesco High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco High Income has no effect on the direction of MFS High i.e., MFS High and Invesco High go up and down completely randomly.

Pair Corralation between MFS High and Invesco High

Considering the 90-day investment horizon MFS High Yield is expected to generate 1.05 times more return on investment than Invesco High. However, MFS High is 1.05 times more volatile than Invesco High Income. It trades about 0.07 of its potential returns per unit of risk. Invesco High Income is currently generating about 0.04 per unit of risk. If you would invest  340.00  in MFS High Yield on September 12, 2025 and sell it today you would earn a total of  8.00  from holding MFS High Yield or generate 2.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

MFS High Yield  vs.  Invesco High Income

MFS High Yield

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in MFS High Yield are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable primary indicators, MFS High is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Invesco High Income

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco High Income are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, Invesco High is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with MFS High and Invesco High

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

The idea behind MFS High Yield and Invesco High Income 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.