Correlation Between MFS Investment and Navient SR

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

By analyzing existing cross correlation between MFS Investment Grade and Navient SR, you can compare the effects of market volatilities on MFS Investment and Navient SR 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 Investment with a short position of Navient SR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Navient SR.

Diversification Opportunities for MFS Investment and Navient SR

0.8

Correlation Coefficient

MFS Investment  Navient SR

Very poor diversification

The 3 months correlation between MFS and Navient is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Navient SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navient SR and MFS Investment 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 Investment Grade are associated (or correlated) with Navient SR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navient SR has no effect on the direction of MFS Investment i.e., MFS Investment and Navient SR go up and down completely randomly.

Pair Corralation between MFS Investment and Navient SR

Considering the 90-day investment horizon MFS Investment Grade is expected to generate 0.61 times more return on investment than Navient SR. However, MFS Investment Grade is 1.63 times less risky than Navient SR. It trades about 0.52 of its potential returns per unit of risk. Navient SR is currently generating about 0.3 per unit of risk. If you would invest  744.00  in MFS Investment Grade on June 29, 2025 and sell it today you would earn a total of  40.00  from holding MFS Investment Grade or generate 5.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

MFS Investment Grade  vs.  Navient SR

MFS Investment Grade

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MFS Investment Grade are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, MFS Investment is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Navient SR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Navient SR are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Navient SR may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with MFS Investment and Navient SR

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

The idea behind MFS Investment Grade and Navient SR 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.