Correlation Between Mfs Aggressive and Mfs Series
Can any of the company-specific risk be diversified away by investing in both Mfs Aggressive and Mfs Series 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 Aggressive and Mfs Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Aggressive Growth and Mfs Series Trust, you can compare the effects of market volatilities on Mfs Aggressive and Mfs Series 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 Aggressive with a short position of Mfs Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Aggressive and Mfs Series.
Diversification Opportunities for Mfs Aggressive and Mfs Series
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mfs and Mfs is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Aggressive Growth and Mfs Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Series Trust and Mfs Aggressive 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 Aggressive Growth are associated (or correlated) with Mfs Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Series Trust has no effect on the direction of Mfs Aggressive i.e., Mfs Aggressive and Mfs Series go up and down completely randomly.
Pair Corralation between Mfs Aggressive and Mfs Series
Assuming the 90 days horizon Mfs Aggressive Growth is expected to generate 2.07 times more return on investment than Mfs Series. However, Mfs Aggressive is 2.07 times more volatile than Mfs Series Trust. It trades about 0.07 of its potential returns per unit of risk. Mfs Series Trust is currently generating about 0.0 per unit of risk. If you would invest 2,587 in Mfs Aggressive Growth on September 1, 2024 and sell it today you would earn a total of 596.00 from holding Mfs Aggressive Growth or generate 23.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.18% |
| Values | Daily Returns |
Mfs Aggressive Growth vs. Mfs Series Trust
Performance |
| Timeline |
| Mfs Aggressive Growth |
| Mfs Series Trust |
Mfs Aggressive and Mfs Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Aggressive and Mfs Series
The main advantage of trading using opposite Mfs Aggressive and Mfs Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Aggressive position performs unexpectedly, Mfs Series 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 Series will offset losses from the drop in Mfs Series' long position.| Mfs Aggressive vs. Goldman Sachs Technology | Mfs Aggressive vs. Biotechnology Fund Class | Mfs Aggressive vs. Columbia Global Technology | Mfs Aggressive vs. Towpath Technology |
| Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard 500 Index | Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard Total Stock |
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 CEOs Directory module to screen CEOs from public companies around the world.
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