Correlation Between Mfs Blended and Mfs Global
Can any of the company-specific risk be diversified away by investing in both Mfs Blended and Mfs Global 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 Global 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 Global Real, you can compare the effects of market volatilities on Mfs Blended and Mfs Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Blended and Mfs Global.
Diversification Opportunities for Mfs Blended and Mfs Global
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Mfs is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Blended Research and Mfs Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Global Real 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Global Real has no effect on the direction of Mfs Blended i.e., Mfs Blended and Mfs Global go up and down completely randomly.
Pair Corralation between Mfs Blended and Mfs Global
Assuming the 90 days horizon Mfs Blended Research is expected to generate 2.13 times more return on investment than Mfs Global. However, Mfs Blended is 2.13 times more volatile than Mfs Global Real. It trades about 0.26 of its potential returns per unit of risk. Mfs Global Real is currently generating about 0.13 per unit of risk. If you would invest 1,567 in Mfs Blended Research on September 1, 2024 and sell it today you would earn a total of 138.00 from holding Mfs Blended Research or generate 8.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mfs Blended Research vs. Mfs Global Real
Performance |
| Timeline |
| Mfs Blended Research |
| Mfs Global Real |
Mfs Blended and Mfs Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Blended and Mfs Global
The main advantage of trading using opposite Mfs Blended and Mfs Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Blended position performs unexpectedly, Mfs Global 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 Global will offset losses from the drop in Mfs Global's long position.| Mfs Blended vs. Valic Company I | Mfs Blended vs. Gmo High Yield | Mfs Blended vs. Msift High Yield | Mfs Blended vs. American Century High |
| Mfs Global vs. Large Cap Growth Profund | Mfs Global vs. Touchstone Large Cap | Mfs Global vs. John Hancock Investment | Mfs Global vs. Transamerica Large Cap |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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