Correlation Between Mfs Maryland and Crow Point

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

By analyzing existing cross correlation between Mfs Maryland Municipal and Crow Point Defined, you can compare the effects of market volatilities on Mfs Maryland and Crow Point 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 Maryland with a short position of Crow Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Maryland and Crow Point.

Diversification Opportunities for Mfs Maryland and Crow Point

0.82

Correlation Coefficient

Mfs Maryland  Crow Point

Very poor diversification

The 3 months correlation between Mfs and Crow is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Maryland Municipal and Crow Point Defined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crow Point Defined and Mfs Maryland 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 Maryland Municipal are associated (or correlated) with Crow Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crow Point Defined has no effect on the direction of Mfs Maryland i.e., Mfs Maryland and Crow Point go up and down completely randomly.

Pair Corralation between Mfs Maryland and Crow Point

Assuming the 90 days horizon Mfs Maryland Municipal is expected to generate 0.28 times more return on investment than Crow Point. However, Mfs Maryland Municipal is 3.57 times less risky than Crow Point. It trades about 0.43 of its potential returns per unit of risk. Crow Point Defined is currently generating about 0.05 per unit of risk. If you would invest  953.00  in Mfs Maryland Municipal on July 19, 2025 and sell it today you would earn a total of  52.00  from holding Mfs Maryland Municipal or generate 5.46% return on investment over 90 days.

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

Mfs Maryland Municipal  vs.  Crow Point Defined

Mfs Maryland Municipal

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Maryland Municipal are ranked lower than 33 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Mfs Maryland is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Crow Point Defined

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Crow Point Defined are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Crow Point 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 Maryland and Crow Point

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

The idea behind Mfs Maryland Municipal and Crow Point Defined 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.