Correlation Between Auer Growth and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Mfs Research 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 Research 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 Research International, you can compare the effects of market volatilities on Auer Growth and Mfs Research 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 Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Mfs Research.
Diversification Opportunities for Auer Growth and Mfs Research
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auer and Mfs is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Mfs Research International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research Interna 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 Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research Interna has no effect on the direction of Auer Growth i.e., Auer Growth and Mfs Research go up and down completely randomly.
Pair Corralation between Auer Growth and Mfs Research
Assuming the 90 days horizon Auer Growth Fund is expected to generate 1.31 times more return on investment than Mfs Research. However, Auer Growth is 1.31 times more volatile than Mfs Research International. It trades about 0.06 of its potential returns per unit of risk. Mfs Research International is currently generating about -0.01 per unit of risk. If you would invest 1,651 in Auer Growth Fund on September 3, 2024 and sell it today you would earn a total of 117.00 from holding Auer Growth Fund or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Mfs Research International
Performance |
| Timeline |
| Auer Growth Fund |
| Mfs Research Interna |
Auer Growth and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Mfs Research
The main advantage of trading using opposite Auer Growth and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Mfs Research 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 Research will offset losses from the drop in Mfs Research'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 Research vs. Oklahoma College Savings | Mfs Research vs. Aqr Managed Futures | Mfs Research vs. Ab Bond Inflation | Mfs Research vs. Ab Bond Inflation |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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