Correlation Between Mfs Lifetime and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Old Westbury 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 Old Westbury 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 Old Westbury Municipal, you can compare the effects of market volatilities on Mfs Lifetime and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Old Westbury.
Diversification Opportunities for Mfs Lifetime and Old Westbury
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Old is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2065 and Old Westbury Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Municipal 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Municipal has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Old Westbury go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Old Westbury
Assuming the 90 days horizon Mfs Lifetime 2065 is expected to generate 4.22 times more return on investment than Old Westbury. However, Mfs Lifetime is 4.22 times more volatile than Old Westbury Municipal. It trades about 0.08 of its potential returns per unit of risk. Old Westbury Municipal is currently generating about 0.06 per unit of risk. If you would invest 802.00 in Mfs Lifetime 2065 on September 3, 2024 and sell it today you would earn a total of 262.00 from holding Mfs Lifetime 2065 or generate 32.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Lifetime 2065 vs. Old Westbury Municipal
Performance |
| Timeline |
| Mfs Lifetime 2065 |
| Old Westbury Municipal |
Mfs Lifetime and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Old Westbury
The main advantage of trading using opposite Mfs Lifetime and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Mfs Lifetime vs. Siit Global Managed | Mfs Lifetime vs. 361 Global Longshort | Mfs Lifetime vs. Qs Global Equity | Mfs Lifetime vs. Morningstar Global Income |
| Old Westbury vs. Legg Mason Partners | Old Westbury vs. Black Oak Emerging | Old Westbury vs. Transamerica Emerging Markets | Old Westbury 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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