Correlation Between Scharf Fund and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Scharf Fund and Mfs Lifetime 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 Scharf Fund and Mfs Lifetime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scharf Fund Retail and Mfs Lifetime 2040, you can compare the effects of market volatilities on Scharf Fund and Mfs Lifetime 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 Scharf Fund with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Fund and Mfs Lifetime.
Diversification Opportunities for Scharf Fund and Mfs Lifetime
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Scharf and Mfs is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Fund Retail and Mfs Lifetime 2040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2040 and Scharf 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 Scharf Fund Retail are associated (or correlated) with Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime 2040 has no effect on the direction of Scharf Fund i.e., Scharf Fund and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Scharf Fund and Mfs Lifetime
Assuming the 90 days horizon Scharf Fund Retail is expected to under-perform the Mfs Lifetime. In addition to that, Scharf Fund is 1.29 times more volatile than Mfs Lifetime 2040. It trades about -0.12 of its total potential returns per unit of risk. Mfs Lifetime 2040 is currently generating about 0.13 per unit of volatility. If you would invest 2,020 in Mfs Lifetime 2040 on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Mfs Lifetime 2040 or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Fund Retail vs. Mfs Lifetime 2040
Performance |
| Timeline |
| Scharf Fund Retail |
| Mfs Lifetime 2040 |
Scharf Fund and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Fund and Mfs Lifetime
The main advantage of trading using opposite Scharf Fund and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Fund position performs unexpectedly, Mfs Lifetime 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 Lifetime will offset losses from the drop in Mfs Lifetime's long position.| Scharf Fund vs. Barings Emerging Markets | Scharf Fund vs. Extended Market Index | Scharf Fund vs. T Rowe Price | Scharf Fund vs. Western Asset Diversified |
| Mfs Lifetime vs. Omni Small Cap Value | Mfs Lifetime vs. T Rowe Price | Mfs Lifetime vs. L Abbett Fundamental | Mfs Lifetime vs. Versatile Bond Portfolio |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |