Correlation Between Dunham Corporate/govern and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern and Mfs Lifetime 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 Dunham Corporate/govern and Mfs Lifetime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Porategovernment Bond and Mfs Lifetime 2065, you can compare the effects of market volatilities on Dunham Corporate/govern and Mfs Lifetime 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 Dunham Corporate/govern with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and Mfs Lifetime.
Diversification Opportunities for Dunham Corporate/govern and Mfs Lifetime
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dunham and Mfs is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and Mfs Lifetime 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2065 and Dunham Corporate/govern 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 Dunham Porategovernment Bond are associated (or correlated) with Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime 2065 has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and Mfs Lifetime
Assuming the 90 days horizon Dunham Corporate/govern is expected to generate 3.16 times less return on investment than Mfs Lifetime. But when comparing it to its historical volatility, Dunham Porategovernment Bond is 2.15 times less risky than Mfs Lifetime. It trades about 0.1 of its potential returns per unit of risk. Mfs Lifetime 2065 is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,040 in Mfs Lifetime 2065 on August 28, 2024 and sell it today you would earn a total of 21.00 from holding Mfs Lifetime 2065 or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Porategovernment Bond vs. Mfs Lifetime 2065
Performance |
| Timeline |
| Dunham Porategovernment |
| Mfs Lifetime 2065 |
Dunham Corporate/govern and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and Mfs Lifetime
The main advantage of trading using opposite Dunham Corporate/govern and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern position performs unexpectedly, Mfs Lifetime 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 Lifetime will offset losses from the drop in Mfs Lifetime's long position.| Dunham Corporate/govern vs. Dunham Dynamic Macro | Dunham Corporate/govern vs. Dunham Appreciation Income | Dunham Corporate/govern vs. Dunham Small Cap | Dunham Corporate/govern vs. Dunham Emerging Markets |
| Mfs Lifetime vs. Short Term Government Fund | Mfs Lifetime vs. Dreyfus Government Cash | Mfs Lifetime vs. Dunham Porategovernment Bond | Mfs Lifetime vs. Virtus Seix Government |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |