Correlation Between Mfs Lifetime and Franklin Small
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Franklin Small 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 Franklin Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Lifetime 2025 and Franklin Small Cap, you can compare the effects of market volatilities on Mfs Lifetime and Franklin Small 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 Franklin Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Franklin Small.
Diversification Opportunities for Mfs Lifetime and Franklin Small
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mfs and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2025 and Franklin Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Small Cap 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 2025 are associated (or correlated) with Franklin Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Small Cap has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Franklin Small go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Franklin Small
If you would invest 1,595 in Franklin Small Cap on October 24, 2024 and sell it today you would earn a total of 56.00 from holding Franklin Small Cap or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mfs Lifetime 2025 vs. Franklin Small Cap
Performance |
| Timeline |
| Mfs Lifetime 2025 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Small Cap |
Mfs Lifetime and Franklin Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Franklin Small
The main advantage of trading using opposite Mfs Lifetime and Franklin Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Franklin Small 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 Franklin Small will offset losses from the drop in Franklin Small's long position.| Mfs Lifetime vs. Us Vector Equity | Mfs Lifetime vs. Gmo Global Equity | Mfs Lifetime vs. Enhanced Fixed Income | Mfs Lifetime vs. Dreyfusstandish Global Fixed |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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