Correlation Between Auer Growth and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Auer Growth 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 Auer Growth and Mfs Lifetime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Mfs Lifetime 2060, you can compare the effects of market volatilities on Auer Growth 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 Auer Growth with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Mfs Lifetime.
Diversification Opportunities for Auer Growth and Mfs Lifetime
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Auer and Mfs is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Mfs Lifetime 2060 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2060 and Auer Growth 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 Auer Growth Fund 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 2060 has no effect on the direction of Auer Growth i.e., Auer Growth and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Auer Growth and Mfs Lifetime
Assuming the 90 days horizon Auer Growth Fund is expected to under-perform the Mfs Lifetime. In addition to that, Auer Growth is 3.18 times more volatile than Mfs Lifetime 2060. It trades about -0.1 of its total potential returns per unit of risk. Mfs Lifetime 2060 is currently generating about 0.03 per unit of volatility. If you would invest 1,617 in Mfs Lifetime 2060 on December 4, 2024 and sell it today you would earn a total of 33.00 from holding Mfs Lifetime 2060 or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Auer Growth Fund vs. Mfs Lifetime 2060
Performance |
| Timeline |
| Auer Growth Fund |
| Mfs Lifetime 2060 |
Auer Growth and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Mfs Lifetime
The main advantage of trading using opposite Auer Growth and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth 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.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
| Mfs Lifetime vs. Artisan High Income | Mfs Lifetime vs. Prudential High Yield | Mfs Lifetime vs. Siit High Yield | Mfs Lifetime vs. Buffalo High Yield |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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