Correlation Between Growth Fund and Mfs Growth
Can any of the company-specific risk be diversified away by investing in both Growth Fund 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 Growth Fund and Mfs Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Mfs Growth Fund, you can compare the effects of market volatilities on Growth Fund 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 Growth Fund with a short position of Mfs Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Mfs Growth.
Diversification Opportunities for Growth Fund and Mfs Growth
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Growth and Mfs is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of 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 Growth Fund 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 Growth Fund Of 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 Growth Fund i.e., Growth Fund and Mfs Growth go up and down completely randomly.
Pair Corralation between Growth Fund and Mfs Growth
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.89 times more return on investment than Mfs Growth. However, Growth Fund Of is 1.12 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 0.16 per unit of risk. If you would invest 7,807 in Growth Fund Of on August 29, 2024 and sell it today you would earn a total of 345.00 from holding Growth Fund Of or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Mfs Growth Fund
Performance |
| Timeline |
| Growth Fund |
| Mfs Growth Fund |
Growth Fund and Mfs Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Mfs Growth
The main advantage of trading using opposite Growth Fund and Mfs Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund 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.| Growth Fund vs. Europacific Growth Fund | Growth Fund vs. Capital World Growth | Growth Fund vs. American Funds Fundamental | Growth Fund vs. Washington Mutual Investors |
| Mfs Growth vs. Mfs Aggressive Growth | Mfs Growth vs. Mfs Research Fund | Mfs Growth vs. Mfs Series Trust | Mfs Growth 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |