Correlation Between Jacob Micro and MFS High

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

By analyzing existing cross correlation between Jacob Micro Cap and MFS High Yield, you can compare the effects of market volatilities on Jacob Micro and MFS 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 Jacob Micro with a short position of MFS High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Micro and MFS High.

Diversification Opportunities for Jacob Micro and MFS High

0.27

Correlation Coefficient

Jacob Micro  MFS High

Modest diversification

The 3 months correlation between Jacob and MFS is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jacob Micro Cap and MFS High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS High Yield and Jacob Micro 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 Jacob Micro Cap are associated (or correlated) with MFS High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS High Yield has no effect on the direction of Jacob Micro i.e., Jacob Micro and MFS High go up and down completely randomly.

Pair Corralation between Jacob Micro and MFS High

Assuming the 90 days horizon Jacob Micro Cap is expected to generate 3.34 times more return on investment than MFS High. However, Jacob Micro is 3.34 times more volatile than MFS High Yield. It trades about 0.11 of its potential returns per unit of risk. MFS High Yield is currently generating about 0.07 per unit of risk. If you would invest  2,865  in Jacob Micro Cap on September 13, 2025 and sell it today you would earn a total of  365.00  from holding Jacob Micro Cap or generate 12.74% return on investment over 90 days.

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

Jacob Micro Cap  vs.  MFS High Yield

Jacob Micro Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Jacob Micro Cap are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Jacob Micro showed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Jacob Micro and MFS High

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

The idea behind Jacob Micro Cap and MFS High Yield 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.