Correlation Between MFS Investment and Return Stacked

Can any of the company-specific risk be diversified away by investing in both MFS Investment and Return Stacked 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 Return Stacked 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 Return Stacked Bonds, you can compare the effects of market volatilities on MFS Investment and Return Stacked 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 Return Stacked. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Return Stacked.

Diversification Opportunities for MFS Investment and Return Stacked

-0.17

Correlation Coefficient

MFS Investment  Return Stacked

Good diversification

The 3 months correlation between MFS and Return is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Return Stacked Bonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Return Stacked Bonds 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 Return Stacked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Return Stacked Bonds has no effect on the direction of MFS Investment i.e., MFS Investment and Return Stacked go up and down completely randomly.

Pair Corralation between MFS Investment and Return Stacked

Considering the 90-day investment horizon MFS Investment Grade is expected to under-perform the Return Stacked. In addition to that, MFS Investment is 1.17 times more volatile than Return Stacked Bonds. It trades about -0.03 of its total potential returns per unit of risk. Return Stacked Bonds is currently generating about 0.13 per unit of volatility. If you would invest  2,052  in Return Stacked Bonds on May 12, 2025 and sell it today you would earn a total of  58.00  from holding Return Stacked Bonds or generate 2.83% return on investment over 90 days.

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

MFS Investment Grade  vs.  Return Stacked Bonds

MFS Investment Grade

Risk-Adjusted Performance

Weakest

Over the last 90 days MFS Investment Grade has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Return Stacked Bonds

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Return Stacked Bonds are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Return Stacked is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with MFS Investment and Return Stacked

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

The idea behind MFS Investment Grade and Return Stacked Bonds 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.