Correlation Between Issachar Fund and Mfs International
Can any of the company-specific risk be diversified away by investing in both Issachar Fund 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 Issachar Fund and Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Issachar Fund Class and Mfs International Value, you can compare the effects of market volatilities on Issachar Fund 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 Issachar Fund with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Mfs International.
Diversification Opportunities for Issachar Fund and Mfs International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Issachar and Mfs is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class 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 Issachar Fund 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 Issachar Fund Class 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 Issachar Fund i.e., Issachar Fund and Mfs International go up and down completely randomly.
Pair Corralation between Issachar Fund and Mfs International
Assuming the 90 days horizon Issachar Fund is expected to generate 3.88 times less return on investment than Mfs International. But when comparing it to its historical volatility, Issachar Fund Class is 1.16 times less risky than Mfs International. It trades about 0.02 of its potential returns per unit of risk. Mfs International Value is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,279 in Mfs International Value on September 4, 2024 and sell it today you would earn a total of 867.00 from holding Mfs International Value or generate 26.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Issachar Fund Class vs. Mfs International Value
Performance |
| Timeline |
| Issachar Fund Class |
| Mfs International Value |
Issachar Fund and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Issachar Fund and Mfs International
The main advantage of trading using opposite Issachar Fund and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund 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.| Issachar Fund vs. Oppenheimer International Diversified | Issachar Fund vs. Massmutual Premier Diversified | Issachar Fund vs. Massmutual Select Diversified | Issachar Fund vs. Adams Diversified Equity |
| Mfs International vs. Issachar Fund Class | Mfs International vs. Volumetric Fund Volumetric | Mfs International vs. Nationwide Global Equity | Mfs International vs. Qs Large Cap |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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