Correlation Between Federated Government and Mfs Intrinsic
Can any of the company-specific risk be diversified away by investing in both Federated Government and Mfs Intrinsic 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 Federated Government and Mfs Intrinsic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Government Income and Mfs Intrinsic Value, you can compare the effects of market volatilities on Federated Government and Mfs Intrinsic 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 Federated Government with a short position of Mfs Intrinsic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Government and Mfs Intrinsic.
Diversification Opportunities for Federated Government and Mfs Intrinsic
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FEDERATED and Mfs is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Federated Government Income and Mfs Intrinsic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Intrinsic Value and Federated Government 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 Federated Government Income are associated (or correlated) with Mfs Intrinsic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Intrinsic Value has no effect on the direction of Federated Government i.e., Federated Government and Mfs Intrinsic go up and down completely randomly.
Pair Corralation between Federated Government and Mfs Intrinsic
Assuming the 90 days horizon Federated Government is expected to generate 1.78 times less return on investment than Mfs Intrinsic. But when comparing it to its historical volatility, Federated Government Income is 2.94 times less risky than Mfs Intrinsic. It trades about 0.06 of its potential returns per unit of risk. Mfs Intrinsic Value is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,172 in Mfs Intrinsic Value on May 31, 2025 and sell it today you would earn a total of 125.00 from holding Mfs Intrinsic Value or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Government Income vs. Mfs Intrinsic Value
Performance |
| Timeline |
| Federated Government |
| Mfs Intrinsic Value |
Federated Government and Mfs Intrinsic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Government and Mfs Intrinsic
The main advantage of trading using opposite Federated Government and Mfs Intrinsic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Government position performs unexpectedly, Mfs Intrinsic 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 Intrinsic will offset losses from the drop in Mfs Intrinsic's long position.| Federated Government vs. Federated Emerging Market | Federated Government vs. Federated Mdt All | Federated Government vs. Federated Mdt Balanced | Federated Government vs. Federated Global Allocation |
| Mfs Intrinsic vs. Artisan High Income | Mfs Intrinsic vs. Pioneer High Yield | Mfs Intrinsic vs. Ladenburg Aggressive Growth | Mfs Intrinsic vs. Ab High Income |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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