Correlation Between MFS Municipal and Delaware Investments
Can any of the company-specific risk be diversified away by investing in both MFS Municipal and Delaware Investments 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 Municipal and Delaware Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Municipal Income and Delaware Investments Florida, you can compare the effects of market volatilities on MFS Municipal and Delaware Investments 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 Municipal with a short position of Delaware Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Municipal and Delaware Investments.
Diversification Opportunities for MFS Municipal and Delaware Investments
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MFS and Delaware is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding MFS Municipal Income and Delaware Investments Florida in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Investments and MFS Municipal 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 Municipal Income are associated (or correlated) with Delaware Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Investments has no effect on the direction of MFS Municipal i.e., MFS Municipal and Delaware Investments go up and down completely randomly.
Pair Corralation between MFS Municipal and Delaware Investments
Considering the 90-day investment horizon MFS Municipal is expected to generate 1.3 times less return on investment than Delaware Investments. In addition to that, MFS Municipal is 1.11 times more volatile than Delaware Investments Florida. It trades about 0.17 of its total potential returns per unit of risk. Delaware Investments Florida is currently generating about 0.25 per unit of volatility. If you would invest 933.00 in Delaware Investments Florida on July 20, 2025 and sell it today you would earn a total of 94.00 from holding Delaware Investments Florida or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Municipal Income vs. Delaware Investments Florida
Performance |
| Timeline |
| MFS Municipal Income |
| Delaware Investments |
MFS Municipal and Delaware Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Municipal and Delaware Investments
The main advantage of trading using opposite MFS Municipal and Delaware Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Municipal position performs unexpectedly, Delaware Investments 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 Delaware Investments will offset losses from the drop in Delaware Investments' long position.| MFS Municipal vs. Eaton Vance Municipal | MFS Municipal vs. Hennessy Equity And | MFS Municipal vs. Putnam Managed Municipal | MFS Municipal vs. Exchange Traded Concepts |
| Delaware Investments vs. Madison Covered Call | Delaware Investments vs. Tortoise Capital Series | Delaware Investments vs. Amg Timessquare International | Delaware Investments vs. Royce International Premier |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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