Correlation Between Mfs Blended and Mfs Value
Can any of the company-specific risk be diversified away by investing in both Mfs Blended and Mfs Value 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 Value 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 Value Fund, you can compare the effects of market volatilities on Mfs Blended and Mfs Value 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 Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Blended and Mfs Value.
Diversification Opportunities for Mfs Blended and Mfs Value
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mfs and Mfs is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Blended Research and Mfs Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Value Fund 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 Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Value Fund has no effect on the direction of Mfs Blended i.e., Mfs Blended and Mfs Value go up and down completely randomly.
Pair Corralation between Mfs Blended and Mfs Value
Assuming the 90 days horizon Mfs Blended is expected to generate 1.12 times less return on investment than Mfs Value. In addition to that, Mfs Blended is 2.0 times more volatile than Mfs Value Fund. It trades about 0.05 of its total potential returns per unit of risk. Mfs Value Fund is currently generating about 0.12 per unit of volatility. If you would invest 4,747 in Mfs Value Fund on August 29, 2024 and sell it today you would earn a total of 800.00 from holding Mfs Value Fund or generate 16.85% 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 Value Fund
Performance |
| Timeline |
| Mfs Blended Research |
| Mfs Value Fund |
Mfs Blended and Mfs Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Blended and Mfs Value
The main advantage of trading using opposite Mfs Blended and Mfs Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Blended position performs unexpectedly, Mfs Value 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 Value will offset losses from the drop in Mfs Value's long position.| Mfs Blended vs. Massmutual Premier Diversified | Mfs Blended vs. Jhancock Diversified Macro | Mfs Blended vs. American Funds Conservative | Mfs Blended vs. Prudential Core Conservative |
| Mfs Value vs. Mfs Total Return | Mfs Value vs. Mfs International Value | Mfs Value vs. Mfs Growth Fund | Mfs Value vs. Mfs International New |
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.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |