Correlation Between Mfs Lifetime and Siit Global
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Siit Global 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 Siit Global 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 Siit Global Managed, you can compare the effects of market volatilities on Mfs Lifetime and Siit Global 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 Siit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Siit Global.
Diversification Opportunities for Mfs Lifetime and Siit Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mfs and Siit is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2065 and Siit Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Global Managed 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 Siit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Global Managed has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Siit Global go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Siit Global
Assuming the 90 days horizon Mfs Lifetime 2065 is expected to generate 1.27 times more return on investment than Siit Global. However, Mfs Lifetime is 1.27 times more volatile than Siit Global Managed. It trades about 0.09 of its potential returns per unit of risk. Siit Global Managed is currently generating about 0.07 per unit of risk. If you would invest 800.00 in Mfs Lifetime 2065 on September 4, 2024 and sell it today you would earn a total of 268.00 from holding Mfs Lifetime 2065 or generate 33.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mfs Lifetime 2065 vs. Siit Global Managed
Performance |
| Timeline |
| Mfs Lifetime 2065 |
| Siit Global Managed |
Mfs Lifetime and Siit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Siit Global
The main advantage of trading using opposite Mfs Lifetime and Siit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Siit Global 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 Siit Global will offset losses from the drop in Siit Global'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 |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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