Correlation Between Pro Blend and Mfs Emerging
Can any of the company-specific risk be diversified away by investing in both Pro Blend and Mfs Emerging 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 Pro Blend and Mfs Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Blend Moderate Term and Mfs Emerging Markets, you can compare the effects of market volatilities on Pro Blend and Mfs Emerging 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 Pro Blend with a short position of Mfs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Blend and Mfs Emerging.
Diversification Opportunities for Pro Blend and Mfs Emerging
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pro and Mfs is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Moderate Term and Mfs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Emerging Markets and Pro Blend 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 Pro Blend Moderate Term are associated (or correlated) with Mfs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Emerging Markets has no effect on the direction of Pro Blend i.e., Pro Blend and Mfs Emerging go up and down completely randomly.
Pair Corralation between Pro Blend and Mfs Emerging
Assuming the 90 days horizon Pro Blend Moderate Term is expected to generate 1.21 times more return on investment than Mfs Emerging. However, Pro Blend is 1.21 times more volatile than Mfs Emerging Markets. It trades about 0.19 of its potential returns per unit of risk. Mfs Emerging Markets is currently generating about 0.1 per unit of risk. If you would invest 1,483 in Pro Blend Moderate Term on September 13, 2024 and sell it today you would earn a total of 19.00 from holding Pro Blend Moderate Term or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Blend Moderate Term vs. Mfs Emerging Markets
Performance |
| Timeline |
| Pro Blend Moderate |
| Mfs Emerging Markets |
Pro Blend and Mfs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Blend and Mfs Emerging
The main advantage of trading using opposite Pro Blend and Mfs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Blend position performs unexpectedly, Mfs Emerging 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 Emerging will offset losses from the drop in Mfs Emerging's long position.| Pro Blend vs. Pro Blend Servative Term | Pro Blend vs. Pro Blend Extended Term | Pro Blend vs. Pro Blend Maximum Term | Pro Blend vs. Greenspring Fund Retail |
| Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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