Correlation Between Amg Managers and Mfs Global

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

By analyzing existing cross correlation between Amg Managers Cadence and Mfs Global High, you can compare the effects of market volatilities on Amg Managers and Mfs Global 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 Amg Managers with a short position of Mfs Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Mfs Global.

Diversification Opportunities for Amg Managers and Mfs Global

-0.25

Correlation Coefficient

Amg Managers  Mfs Global

Very good diversification

The 3 months correlation between Amg and Mfs is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Cadence and Mfs Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Global High and Amg Managers 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 Amg Managers Cadence are associated (or correlated) with Mfs Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Global High has no effect on the direction of Amg Managers i.e., Amg Managers and Mfs Global go up and down completely randomly.

Pair Corralation between Amg Managers and Mfs Global

Assuming the 90 days horizon Amg Managers Cadence is expected to under-perform the Mfs Global. In addition to that, Amg Managers is 4.88 times more volatile than Mfs Global High. It trades about -0.23 of its total potential returns per unit of risk. Mfs Global High is currently generating about 0.02 per unit of volatility. If you would invest  556.00  in Mfs Global High on September 22, 2024 and sell it today you would earn a total of  1.00  from holding Mfs Global High or generate 0.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Amg Managers Cadence  vs.  Mfs Global High

Amg Managers Cadence

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amg Managers Cadence has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Mfs Global High

Risk-Adjusted Performance

1 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Global High are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mfs Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amg Managers and Mfs Global

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

The idea behind Amg Managers Cadence and Mfs Global High 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.

Check out your portfolio center.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.