Correlation Between Mfs Lifetime and Ishares Municipal
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Ishares Municipal 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 Ishares Municipal 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 Ishares Municipal Bond, you can compare the effects of market volatilities on Mfs Lifetime and Ishares Municipal 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 Ishares Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Ishares Municipal.
Diversification Opportunities for Mfs Lifetime and Ishares Municipal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mfs and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2065 and Ishares Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ishares Municipal Bond 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 Ishares Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ishares Municipal Bond has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Ishares Municipal go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Ishares Municipal
Assuming the 90 days horizon Mfs Lifetime 2065 is expected to generate 1.78 times more return on investment than Ishares Municipal. However, Mfs Lifetime is 1.78 times more volatile than Ishares Municipal Bond. It trades about 0.3 of its potential returns per unit of risk. Ishares Municipal Bond is currently generating about 0.19 per unit of risk. If you would invest 1,032 in Mfs Lifetime 2065 on September 4, 2024 and sell it today you would earn a total of 36.00 from holding Mfs Lifetime 2065 or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mfs Lifetime 2065 vs. Ishares Municipal Bond
Performance |
| Timeline |
| Mfs Lifetime 2065 |
| Ishares Municipal Bond |
Mfs Lifetime and Ishares Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Ishares Municipal
The main advantage of trading using opposite Mfs Lifetime and Ishares Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Ishares Municipal 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 Ishares Municipal will offset losses from the drop in Ishares Municipal's long position.| Mfs Lifetime vs. T Rowe Price | Mfs Lifetime vs. Gamco Global Telecommunications | Mfs Lifetime vs. Victory High Income | Mfs Lifetime vs. Bbh Intermediate Municipal |
| Ishares Municipal vs. Growth Strategy Fund | Ishares Municipal vs. Scharf Global Opportunity | Ishares Municipal vs. Principal Lifetime Hybrid | Ishares Municipal vs. T Rowe Price |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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