Correlation Between ATT and Mfs California

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

By analyzing existing cross correlation between ATT Inc and Mfs California Municipal, you can compare the effects of market volatilities on ATT and Mfs California 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 ATT with a short position of Mfs California. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Mfs California.

Diversification Opportunities for ATT and Mfs California

-0.84

Correlation Coefficient

ATT  Mfs California

Pay attention - limited upside

The 3 months correlation between ATT and Mfs is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Mfs California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs California Municipal and ATT 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 ATT Inc are associated (or correlated) with Mfs California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs California Municipal has no effect on the direction of ATT i.e., ATT and Mfs California go up and down completely randomly.

Pair Corralation between ATT and Mfs California

Taking into account the 90-day investment horizon ATT Inc is expected to under-perform the Mfs California. In addition to that, ATT is 7.44 times more volatile than Mfs California Municipal. It trades about -0.15 of its total potential returns per unit of risk. Mfs California Municipal is currently generating about 0.23 per unit of volatility. If you would invest  539.00  in Mfs California Municipal on September 7, 2025 and sell it today you would earn a total of  14.00  from holding Mfs California Municipal or generate 2.6% return on investment over 90 days.

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

ATT Inc  vs.  Mfs California Municipal

ATT Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days ATT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Mfs California Municipal

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs California Municipal are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mfs California is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ATT and Mfs California

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

The idea behind ATT Inc and Mfs California Municipal 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.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.