Correlation Between MFS High and BNY Mellon
Can any of the company-specific risk be diversified away by investing in both MFS High and BNY Mellon 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 High and BNY Mellon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS High Yield and BNY Mellon High, you can compare the effects of market volatilities on MFS High and BNY Mellon 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 High with a short position of BNY Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS High and BNY Mellon.
Diversification Opportunities for MFS High and BNY Mellon
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MFS and BNY is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding MFS High Yield and BNY Mellon High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNY Mellon High and MFS High 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 High Yield are associated (or correlated) with BNY Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNY Mellon High has no effect on the direction of MFS High i.e., MFS High and BNY Mellon go up and down completely randomly.
Pair Corralation between MFS High and BNY Mellon
Considering the 90-day investment horizon MFS High Yield is expected to generate 0.77 times more return on investment than BNY Mellon. However, MFS High Yield is 1.29 times less risky than BNY Mellon. It trades about 0.31 of its potential returns per unit of risk. BNY Mellon High is currently generating about 0.02 per unit of risk. If you would invest 317.00 in MFS High Yield on July 20, 2025 and sell it today you would earn a total of 31.00 from holding MFS High Yield or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS High Yield vs. BNY Mellon High
Performance |
| Timeline |
| MFS High Yield |
| BNY Mellon High |
MFS High and BNY Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS High and BNY Mellon
The main advantage of trading using opposite MFS High and BNY Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS High position performs unexpectedly, BNY Mellon 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 BNY Mellon will offset losses from the drop in BNY Mellon's long position.| MFS High vs. Saat E Market | MFS High vs. High Yield Strategy | MFS High vs. High Yield Strategy | MFS High vs. Alphacentric Global Innovations |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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