Correlation Between Mfs Blended and Global Gold
Can any of the company-specific risk be diversified away by investing in both Mfs Blended and Global Gold 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 Global Gold 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 Global Gold Fund, you can compare the effects of market volatilities on Mfs Blended and Global Gold 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 Global Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Blended and Global Gold.
Diversification Opportunities for Mfs Blended and Global Gold
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mfs and Global is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Blended Research and Global Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gold 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 Global Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gold Fund has no effect on the direction of Mfs Blended i.e., Mfs Blended and Global Gold go up and down completely randomly.
Pair Corralation between Mfs Blended and Global Gold
Assuming the 90 days horizon Mfs Blended Research is expected to under-perform the Global Gold. In addition to that, Mfs Blended is 1.26 times more volatile than Global Gold Fund. It trades about -0.29 of its total potential returns per unit of risk. Global Gold Fund is currently generating about -0.2 per unit of volatility. If you would invest 1,297 in Global Gold Fund on October 9, 2024 and sell it today you would lose (91.00) from holding Global Gold Fund or give up 7.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Blended Research vs. Global Gold Fund
Performance |
| Timeline |
| Mfs Blended Research |
| Global Gold Fund |
Mfs Blended and Global Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Blended and Global Gold
The main advantage of trading using opposite Mfs Blended and Global Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Blended position performs unexpectedly, Global Gold 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 Global Gold will offset losses from the drop in Global Gold's long position.| Mfs Blended vs. Mfs Growth Fund | Mfs Blended vs. Prudential Total Return | Mfs Blended vs. Mfs International Diversification | Mfs Blended vs. Mfs Mid Cap |
| Global Gold vs. Dws Government Money | Global Gold vs. Leader Short Term Bond | Global Gold vs. Bbh Intermediate Municipal | Global Gold vs. Georgia Tax Free Bond |
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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