Correlation Between Mfs Growth and Mfs International
Can any of the company-specific risk be diversified away by investing in both Mfs Growth 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 Growth 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 Growth Fund and Mfs International Diversification, you can compare the effects of market volatilities on Mfs Growth 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 Growth with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Growth and Mfs International.
Diversification Opportunities for Mfs Growth and Mfs International
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and MFS is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Growth Fund and Mfs International Diversificat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs 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 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 has no effect on the direction of Mfs Growth i.e., Mfs Growth and Mfs International go up and down completely randomly.
Pair Corralation between Mfs Growth and Mfs International
Assuming the 90 days horizon Mfs Growth Fund is expected to generate 1.55 times more return on investment than Mfs International. However, Mfs Growth is 1.55 times more volatile than Mfs International Diversification. It trades about 0.16 of its potential returns per unit of risk. Mfs International Diversification is currently generating about -0.22 per unit of risk. If you would invest 21,908 in Mfs Growth Fund on August 29, 2024 and sell it today you would earn a total of 850.00 from holding Mfs Growth Fund or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Growth Fund vs. Mfs International Diversificat
Performance |
| Timeline |
| Mfs Growth Fund |
| Mfs International |
Mfs Growth and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Growth and Mfs International
The main advantage of trading using opposite Mfs Growth and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Growth 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 Growth vs. Mfs Value Fund | Mfs Growth vs. Mfs International Value | Mfs Growth vs. Mfs Mid Cap | Mfs Growth vs. Mfs International Diversification |
| Mfs International vs. Mfs Growth Fund | Mfs International vs. Prudential Total Return | Mfs International vs. Mfs Value Fund | Mfs International vs. John Hancock Bond |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |