Correlation Between Mfs Value and Nuveen Minnesota
Can any of the company-specific risk be diversified away by investing in both Mfs Value and Nuveen Minnesota 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 Value and Nuveen Minnesota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Value Fund and Nuveen Minnesota Municipal, you can compare the effects of market volatilities on Mfs Value and Nuveen Minnesota 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 Value with a short position of Nuveen Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and Nuveen Minnesota.
Diversification Opportunities for Mfs Value and Nuveen Minnesota
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mfs and Nuveen is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund and Nuveen Minnesota Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Minnesota Mun and Mfs Value 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 Value Fund are associated (or correlated) with Nuveen Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Minnesota Mun has no effect on the direction of Mfs Value i.e., Mfs Value and Nuveen Minnesota go up and down completely randomly.
Pair Corralation between Mfs Value and Nuveen Minnesota
Assuming the 90 days horizon Mfs Value Fund is expected to generate 3.22 times more return on investment than Nuveen Minnesota. However, Mfs Value is 3.22 times more volatile than Nuveen Minnesota Municipal. It trades about 0.1 of its potential returns per unit of risk. Nuveen Minnesota Municipal is currently generating about 0.1 per unit of risk. If you would invest 4,580 in Mfs Value Fund on September 13, 2024 and sell it today you would earn a total of 694.00 from holding Mfs Value Fund or generate 15.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.6% |
Values | Daily Returns |
Mfs Value Fund vs. Nuveen Minnesota Municipal
Performance |
Timeline |
Mfs Value Fund |
Nuveen Minnesota Mun |
Mfs Value and Nuveen Minnesota Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mfs Value and Nuveen Minnesota
The main advantage of trading using opposite Mfs Value and Nuveen Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value position performs unexpectedly, Nuveen Minnesota 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 Nuveen Minnesota will offset losses from the drop in Nuveen Minnesota's long position.Mfs Value vs. Nuveen Minnesota Municipal | Mfs Value vs. T Rowe Price | Mfs Value vs. Bbh Intermediate Municipal | Mfs Value vs. Ab Impact Municipal |
Nuveen Minnesota vs. Great West Goldman Sachs | Nuveen Minnesota vs. Goldman Sachs Clean | Nuveen Minnesota vs. Europac Gold Fund | Nuveen Minnesota vs. Invesco Gold Special |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |