Correlation Between Ab Impact and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Mfs Lifetime 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 Ab Impact and Mfs Lifetime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Mfs Lifetime 2040, you can compare the effects of market volatilities on Ab Impact and Mfs Lifetime 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 Ab Impact with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Mfs Lifetime.
Diversification Opportunities for Ab Impact and Mfs Lifetime
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ABIMX and Mfs is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Mfs Lifetime 2040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2040 and Ab Impact 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 Ab Impact Municipal are associated (or correlated) with Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime 2040 has no effect on the direction of Ab Impact i.e., Ab Impact and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Ab Impact and Mfs Lifetime
Assuming the 90 days horizon Ab Impact Municipal is expected to generate 0.41 times more return on investment than Mfs Lifetime. However, Ab Impact Municipal is 2.42 times less risky than Mfs Lifetime. It trades about 0.44 of its potential returns per unit of risk. Mfs Lifetime 2040 is currently generating about 0.13 per unit of risk. If you would invest 984.00 in Ab Impact Municipal on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Ab Impact Municipal or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ab Impact Municipal vs. Mfs Lifetime 2040
Performance |
| Timeline |
| Ab Impact Municipal |
| Mfs Lifetime 2040 |
Ab Impact and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Mfs Lifetime
The main advantage of trading using opposite Ab Impact and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Mfs Lifetime 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 Lifetime will offset losses from the drop in Mfs Lifetime's long position.| Ab Impact vs. Vanguard Small Cap Value | Ab Impact vs. Heartland Value Plus | Ab Impact vs. Royce Opportunity Fund | Ab Impact vs. Great West Loomis Sayles |
| Mfs Lifetime vs. Mfs Prudent Investor | Mfs Lifetime vs. Mfs Prudent Investor | Mfs Lifetime vs. Mfs Prudent Investor | Mfs Lifetime vs. Mfs Prudent Investor |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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