Correlation Between Mfs Blended and Mfs Growth
Can any of the company-specific risk be diversified away by investing in both Mfs Blended and Mfs Growth 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 Growth 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 Growth Fund, you can compare the effects of market volatilities on Mfs Blended and Mfs Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Blended and Mfs Growth.
Diversification Opportunities for Mfs Blended and Mfs Growth
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mfs and Mfs is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Blended Research and Mfs Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Growth 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Growth Fund has no effect on the direction of Mfs Blended i.e., Mfs Blended and Mfs Growth go up and down completely randomly.
Pair Corralation between Mfs Blended and Mfs Growth
Assuming the 90 days horizon Mfs Blended Research is expected to generate 0.61 times more return on investment than Mfs Growth. However, Mfs Blended Research is 1.63 times less risky than Mfs Growth. It trades about 0.2 of its potential returns per unit of risk. Mfs Growth Fund is currently generating about 0.09 per unit of risk. If you would invest 1,522 in Mfs Blended Research on October 25, 2024 and sell it today you would earn a total of 43.00 from holding Mfs Blended Research or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Mfs Blended Research vs. Mfs Growth Fund
Performance |
| Timeline |
| Mfs Blended Research |
| Mfs Growth Fund |
Mfs Blended and Mfs Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Blended and Mfs Growth
The main advantage of trading using opposite Mfs Blended and Mfs Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Blended position performs unexpectedly, Mfs Growth 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 Growth will offset losses from the drop in Mfs Growth's long position.| Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor |
| Mfs Growth vs. Guggenheim High Yield | Mfs Growth vs. Strategic Advisers Income | Mfs Growth vs. Lord Abbett Short | Mfs Growth vs. Pace High Yield |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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