Correlation Between Mfs Value and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Mfs Value and Oppenheimer 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 Oppenheimer 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 Oppenheimer International Growth, you can compare the effects of market volatilities on Mfs Value and Oppenheimer 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 Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and Oppenheimer International.
Diversification Opportunities for Mfs Value and Oppenheimer International
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Oppenheimer is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund and Oppenheimer International Grow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International 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 Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Mfs Value i.e., Mfs Value and Oppenheimer International go up and down completely randomly.
Pair Corralation between Mfs Value and Oppenheimer International
Assuming the 90 days horizon Mfs Value Fund is expected to generate 0.74 times more return on investment than Oppenheimer International. However, Mfs Value Fund is 1.36 times less risky than Oppenheimer International. It trades about 0.07 of its potential returns per unit of risk. Oppenheimer International Growth is currently generating about 0.04 per unit of risk. If you would invest 4,468 in Mfs Value Fund on September 3, 2024 and sell it today you would earn a total of 1,146 from holding Mfs Value Fund or generate 25.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Value Fund vs. Oppenheimer International Grow
Performance |
| Timeline |
| Mfs Value Fund |
| Oppenheimer International |
Mfs Value and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Value and Oppenheimer International
The main advantage of trading using opposite Mfs Value and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value position performs unexpectedly, Oppenheimer 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 Oppenheimer International will offset losses from the drop in Oppenheimer International's long position.| Mfs Value vs. Dodge Cox Stock | Mfs Value vs. American Funds American | Mfs Value vs. American Funds American | Mfs Value vs. American Mutual Fund |
| Oppenheimer International vs. Fidelity International Growth | Oppenheimer International vs. Fidelity Small Cap | Oppenheimer International vs. Fidelity Advisor Mid | Oppenheimer International vs. HUMANA INC |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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