Correlation Between Dodge International and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Dodge International 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 Dodge International and Mfs Lifetime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dodge International Stock and Mfs Lifetime 2040, you can compare the effects of market volatilities on Dodge International 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 Dodge International with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge International and Mfs Lifetime.
Diversification Opportunities for Dodge International and Mfs Lifetime
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dodge and Mfs is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dodge International Stock and Mfs Lifetime 2040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2040 and Dodge International 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 Dodge International Stock 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 2040 has no effect on the direction of Dodge International i.e., Dodge International and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Dodge International and Mfs Lifetime
Assuming the 90 days horizon Dodge International is expected to generate 1.1 times less return on investment than Mfs Lifetime. In addition to that, Dodge International is 1.27 times more volatile than Mfs Lifetime 2040. It trades about 0.09 of its total potential returns per unit of risk. Mfs Lifetime 2040 is currently generating about 0.13 per unit of volatility. If you would invest 2,020 in Mfs Lifetime 2040 on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Mfs Lifetime 2040 or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dodge International Stock vs. Mfs Lifetime 2040
Performance |
| Timeline |
| Dodge International Stock |
| Mfs Lifetime 2040 |
Dodge International and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge International and Mfs Lifetime
The main advantage of trading using opposite Dodge International and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge International 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.| Dodge International vs. Dodge Stock Fund | Dodge International vs. Dodge Income Fund | Dodge International vs. Dodge Balanced Fund | Dodge International vs. The Fairholme Fund |
| Mfs Lifetime vs. Omni Small Cap Value | Mfs Lifetime vs. T Rowe Price | Mfs Lifetime vs. L Abbett Fundamental | Mfs Lifetime vs. Versatile Bond Portfolio |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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