Correlation Between Mfs Growth and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Mfs Growth and Mfs Research 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 Growth and Mfs Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Growth Fund and Mfs Research Fund, you can compare the effects of market volatilities on Mfs Growth and Mfs Research 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 Growth with a short position of Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Growth and Mfs Research.
Diversification Opportunities for Mfs Growth and Mfs Research
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mfs and Mfs is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Growth Fund and Mfs Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research and Mfs Growth 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 Growth Fund are associated (or correlated) with Mfs Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research has no effect on the direction of Mfs Growth i.e., Mfs Growth and Mfs Research go up and down completely randomly.
Pair Corralation between Mfs Growth and Mfs Research
Assuming the 90 days horizon Mfs Growth Fund is expected to generate 1.5 times more return on investment than Mfs Research. However, Mfs Growth is 1.5 times more volatile than Mfs Research Fund. It trades about 0.09 of its potential returns per unit of risk. Mfs Research Fund is currently generating about 0.11 per unit of risk. If you would invest 18,930 in Mfs Growth Fund on October 25, 2024 and sell it today you would earn a total of 368.00 from holding Mfs Growth Fund or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Growth Fund vs. Mfs Research Fund
Performance |
| Timeline |
| Mfs Growth Fund |
| Mfs Research |
Mfs Growth and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Growth and Mfs Research
The main advantage of trading using opposite Mfs Growth and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Growth position performs unexpectedly, Mfs Research 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 Research will offset losses from the drop in Mfs Research's long position.| Mfs Growth vs. Massachusetts Investors Trust | Mfs Growth vs. Mfs Research Fund | Mfs Growth vs. Massachusetts Investors Growth | Mfs Growth vs. Mfs Value Fund |
| Mfs Research vs. Allianzgi Health Sciences | Mfs Research vs. Eventide Healthcare Life | Mfs Research vs. Highland Longshort Healthcare | Mfs Research vs. Deutsche Health And |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |