Correlation Between Mfs Lifetime and Blackrock Inflation
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Blackrock Inflation 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 Blackrock Inflation 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 Blackrock Inflation Protected, you can compare the effects of market volatilities on Mfs Lifetime and Blackrock Inflation 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 Blackrock Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Blackrock Inflation.
Diversification Opportunities for Mfs Lifetime and Blackrock Inflation
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Blackrock is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2065 and Blackrock Inflation Protected in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Inflation 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 Blackrock Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Inflation has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Blackrock Inflation go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Blackrock Inflation
Assuming the 90 days horizon Mfs Lifetime 2065 is expected to generate 1.77 times more return on investment than Blackrock Inflation. However, Mfs Lifetime is 1.77 times more volatile than Blackrock Inflation Protected. It trades about 0.34 of its potential returns per unit of risk. Blackrock Inflation Protected is currently generating about 0.03 per unit of risk. If you would invest 1,030 in Mfs Lifetime 2065 on September 1, 2024 and sell it today you would earn a total of 41.00 from holding Mfs Lifetime 2065 or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mfs Lifetime 2065 vs. Blackrock Inflation Protected
Performance |
| Timeline |
| Mfs Lifetime 2065 |
| Blackrock Inflation |
Mfs Lifetime and Blackrock Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Blackrock Inflation
The main advantage of trading using opposite Mfs Lifetime and Blackrock Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Blackrock Inflation 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 Blackrock Inflation will offset losses from the drop in Blackrock Inflation's long position.| Mfs Lifetime vs. Mfs Prudent Investor | Mfs Lifetime vs. Mfs Prudent Investor | Mfs Lifetime vs. Mfs Prudent Investor | Mfs Lifetime vs. Mfs Prudent Investor |
| Blackrock Inflation vs. Blackrock California Municipal | Blackrock Inflation vs. Blackrock Balanced Capital | Blackrock Inflation vs. Blackrock Eurofund Class | Blackrock Inflation vs. Blackrock Funds |
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.
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