Correlation Between Mfs Emerging and Europacific Growth
Can any of the company-specific risk be diversified away by investing in both Mfs Emerging and Europacific Growth 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 Emerging and Europacific Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Emerging Markets and Europacific Growth Fund, you can compare the effects of market volatilities on Mfs Emerging and Europacific Growth 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 Emerging with a short position of Europacific Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Emerging and Europacific Growth.
Diversification Opportunities for Mfs Emerging and Europacific Growth
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mfs and Europacific is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Emerging Markets and Europacific Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europacific Growth and Mfs Emerging 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 Emerging Markets are associated (or correlated) with Europacific Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europacific Growth has no effect on the direction of Mfs Emerging i.e., Mfs Emerging and Europacific Growth go up and down completely randomly.
Pair Corralation between Mfs Emerging and Europacific Growth
Assuming the 90 days horizon Mfs Emerging Markets is expected to generate 0.41 times more return on investment than Europacific Growth. However, Mfs Emerging Markets is 2.45 times less risky than Europacific Growth. It trades about 0.14 of its potential returns per unit of risk. Europacific Growth Fund is currently generating about 0.04 per unit of risk. If you would invest 1,072 in Mfs Emerging Markets on August 26, 2024 and sell it today you would earn a total of 131.00 from holding Mfs Emerging Markets or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Emerging Markets vs. Europacific Growth Fund
Performance |
| Timeline |
| Mfs Emerging Markets |
| Europacific Growth |
Mfs Emerging and Europacific Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Emerging and Europacific Growth
The main advantage of trading using opposite Mfs Emerging and Europacific Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Emerging position performs unexpectedly, Europacific Growth 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 Europacific Growth will offset losses from the drop in Europacific Growth's long position.| Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor |
| Europacific Growth vs. Firsthand Technology Opportunities | Europacific Growth vs. Invesco Technology Fund | Europacific Growth vs. Dreyfus Technology Growth | Europacific Growth vs. Mfs Technology Fund |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |