Correlation Between Qwest Corp and MFS Intermediate

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

By analyzing existing cross correlation between Qwest Corp NT and MFS Intermediate Income, you can compare the effects of market volatilities on Qwest Corp and MFS Intermediate 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 Qwest Corp with a short position of MFS Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qwest Corp and MFS Intermediate.

Diversification Opportunities for Qwest Corp and MFS Intermediate

0.0

Correlation Coefficient

Qwest Corp  MFS Intermediate

Pay attention - limited upside

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

Pair Corralation between Qwest Corp and MFS Intermediate

Given the investment horizon of 90 days Qwest Corp NT is expected to under-perform the MFS Intermediate. In addition to that, Qwest Corp is 2.68 times more volatile than MFS Intermediate Income. It trades about -0.07 of its total potential returns per unit of risk. MFS Intermediate Income is currently generating about -0.04 per unit of volatility. If you would invest  266.00  in MFS Intermediate Income on September 9, 2025 and sell it today you would lose (4.00) from holding MFS Intermediate Income or give up 1.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Qwest Corp NT  vs.  MFS Intermediate Income

Qwest Corp NT

Risk-Adjusted Performance

Weakest

Over the last 90 days Qwest Corp NT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Qwest Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

MFS Intermediate Income

Risk-Adjusted Performance

Weakest

Over the last 90 days MFS Intermediate Income has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, MFS Intermediate is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Qwest Corp and MFS Intermediate

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

The idea behind Qwest Corp NT and MFS Intermediate 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.