Correlation Between Mfs Value and Mfs International
Can any of the company-specific risk be diversified away by investing in both Mfs Value 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 Mfs Value and Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Value Fund and Mfs International Value, you can compare the effects of market volatilities on Mfs Value 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 Mfs Value with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and Mfs International.
Diversification Opportunities for Mfs Value and Mfs International
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Mfs is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund 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 Mfs Value 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 Value Fund 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 Mfs Value i.e., Mfs Value and Mfs International go up and down completely randomly.
Pair Corralation between Mfs Value and Mfs International
Assuming the 90 days horizon Mfs Value Fund is expected to generate 0.9 times more return on investment than Mfs International. However, Mfs Value Fund is 1.12 times less risky than Mfs International. It trades about 0.18 of its potential returns per unit of risk. Mfs International Value is currently generating about -0.16 per unit of risk. If you would invest 5,385 in Mfs Value Fund on August 29, 2024 and sell it today you would earn a total of 162.00 from holding Mfs Value Fund or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Value Fund vs. Mfs International Value
Performance |
| Timeline |
| Mfs Value Fund |
| Mfs International Value |
Mfs Value and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Value and Mfs International
The main advantage of trading using opposite Mfs Value and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value 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.| Mfs Value vs. Mfs Total Return | Mfs Value vs. Mfs International Value | Mfs Value vs. Mfs Growth Fund | Mfs Value vs. Mfs International New |
| Mfs International vs. Redwood Real Estate | Mfs International vs. Dunham Real Estate | Mfs International vs. Versus Capital Multi Manager | Mfs International vs. Commonwealth Real Estate |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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