Correlation Between Mfs Blended and Mfs Aggressive
Can any of the company-specific risk be diversified away by investing in both Mfs Blended and Mfs Aggressive 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 Blended and Mfs Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Blended Research and Mfs Aggressive Growth, you can compare the effects of market volatilities on Mfs Blended and Mfs Aggressive 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 Blended with a short position of Mfs Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Blended and Mfs Aggressive.
Diversification Opportunities for Mfs Blended and Mfs Aggressive
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mfs and Mfs is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Blended Research and Mfs Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Aggressive Growth and Mfs Blended 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 Blended Research are associated (or correlated) with Mfs Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Aggressive Growth has no effect on the direction of Mfs Blended i.e., Mfs Blended and Mfs Aggressive go up and down completely randomly.
Pair Corralation between Mfs Blended and Mfs Aggressive
Assuming the 90 days horizon Mfs Blended Research is expected to under-perform the Mfs Aggressive. In addition to that, Mfs Blended is 1.32 times more volatile than Mfs Aggressive Growth. It trades about -0.19 of its total potential returns per unit of risk. Mfs Aggressive Growth is currently generating about 0.13 per unit of volatility. If you would invest 3,117 in Mfs Aggressive Growth on August 29, 2024 and sell it today you would earn a total of 53.00 from holding Mfs Aggressive Growth or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Blended Research vs. Mfs Aggressive Growth
Performance |
| Timeline |
| Mfs Blended Research |
| Mfs Aggressive Growth |
Mfs Blended and Mfs Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Blended and Mfs Aggressive
The main advantage of trading using opposite Mfs Blended and Mfs Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Blended position performs unexpectedly, Mfs Aggressive 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 Aggressive will offset losses from the drop in Mfs Aggressive's long position.| Mfs Blended vs. Vanguard Emerging Markets | Mfs Blended vs. Vanguard Emerging Markets | Mfs Blended vs. HUMANA INC | Mfs Blended vs. Aquagold International |
| Mfs Aggressive vs. Blackrock Science Technology | Mfs Aggressive vs. Janus Global Technology | Mfs Aggressive vs. Science Technology Fund | Mfs Aggressive vs. Firsthand Technology Opportunities |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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