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
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mfs and Mfs is 0.82. 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 Research is expected to generate 1.52 times more return on investment than Mfs Value. However, Mfs Blended is 1.52 times more volatile than Mfs Value Fund. It trades about 0.16 of its potential returns per unit of risk. Mfs Value Fund is currently generating about 0.18 per unit of risk. If you would invest 2,383 in Mfs Blended Research on August 29, 2024 and sell it today you would earn a total of 97.00 from holding Mfs Blended Research or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| 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. Rbc Ultra Short Fixed | Mfs Blended vs. Calvert Short Duration | Mfs Blended vs. Angel Oak Ultrashort | Mfs Blended vs. Aqr Long Short Equity |
| Mfs Value vs. Mfs Aggressive Growth | Mfs Value vs. Mfs Research Fund | Mfs Value vs. Mfs Series Trust | Mfs Value vs. Mfs California Municipal |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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