Correlation Between Mfs Lifetime and Mfs International
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Mfs International 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 Lifetime and Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Lifetime 2065 and Mfs International Value, you can compare the effects of market volatilities on Mfs Lifetime and Mfs International 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 Lifetime with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Mfs International.
Diversification Opportunities for Mfs Lifetime and Mfs International
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mfs and Mfs is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2065 and Mfs International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International Value and Mfs Lifetime 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 Lifetime 2065 are associated (or correlated) with Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International Value has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Mfs International go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Mfs International
Assuming the 90 days horizon Mfs Lifetime is expected to generate 1.26 times less return on investment than Mfs International. But when comparing it to its historical volatility, Mfs Lifetime 2065 is 1.33 times less risky than Mfs International. It trades about 0.27 of its potential returns per unit of risk. Mfs International Value is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 3,564 in Mfs International Value on November 9, 2024 and sell it today you would earn a total of 162.00 from holding Mfs International Value or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Lifetime 2065 vs. Mfs International Value
Performance |
| Timeline |
| Mfs Lifetime 2065 |
| Mfs International Value |
Mfs Lifetime and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Mfs International
The main advantage of trading using opposite Mfs Lifetime and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Mfs International 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 International will offset losses from the drop in Mfs International's long position.| Mfs Lifetime vs. Lord Abbett Inflation | Mfs Lifetime vs. Credit Suisse Multialternative | Mfs Lifetime vs. Ab Bond Inflation | Mfs Lifetime vs. Ab Bond Inflation |
| Mfs International vs. Legg Mason Global | Mfs International vs. Barings Global Floating | Mfs International vs. Investec Global Franchise | Mfs International vs. Ab Global Bond |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |