Correlation Between Mfs Growth and Invesco International
Can any of the company-specific risk be diversified away by investing in both Mfs Growth and Invesco 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 Growth and Invesco International 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 Invesco International Growth, you can compare the effects of market volatilities on Mfs Growth and Invesco 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 Growth with a short position of Invesco International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Growth and Invesco International.
Diversification Opportunities for Mfs Growth and Invesco International
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Invesco is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Growth Fund and Invesco International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco International 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 Invesco International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco International has no effect on the direction of Mfs Growth i.e., Mfs Growth and Invesco International go up and down completely randomly.
Pair Corralation between Mfs Growth and Invesco International
Assuming the 90 days horizon Mfs Growth Fund is expected to generate 1.17 times more return on investment than Invesco International. However, Mfs Growth is 1.17 times more volatile than Invesco International Growth. It trades about 0.34 of its potential returns per unit of risk. Invesco International Growth is currently generating about 0.0 per unit of risk. If you would invest 21,552 in Mfs Growth Fund on September 5, 2024 and sell it today you would earn a total of 1,486 from holding Mfs Growth Fund or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Growth Fund vs. Invesco International Growth
Performance |
| Timeline |
| Mfs Growth Fund |
| Invesco International |
Mfs Growth and Invesco International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Growth and Invesco International
The main advantage of trading using opposite Mfs Growth and Invesco International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Growth position performs unexpectedly, Invesco 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 Invesco International will offset losses from the drop in Invesco International's long position.| Mfs Growth vs. Mfs Prudent Investor | Mfs Growth vs. Mfs Prudent Investor | Mfs Growth vs. Mfs Prudent Investor | Mfs Growth vs. Mfs Prudent Investor |
| Invesco International vs. Artisan Emerging Markets | Invesco International vs. Legg Mason Partners | Invesco International vs. Rbc Emerging Markets | Invesco International vs. Jpmorgan Emerging Markets |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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