Correlation Between Mfs Growth and Mfs Institutional
Can any of the company-specific risk be diversified away by investing in both Mfs Growth and Mfs Institutional 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 Institutional 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 Institutional International, you can compare the effects of market volatilities on Mfs Growth and Mfs Institutional 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 Institutional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Growth and Mfs Institutional.
Diversification Opportunities for Mfs Growth and Mfs Institutional
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Mfs is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Growth Fund and Mfs Institutional Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Institutional 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 Institutional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Institutional has no effect on the direction of Mfs Growth i.e., Mfs Growth and Mfs Institutional go up and down completely randomly.
Pair Corralation between Mfs Growth and Mfs Institutional
Assuming the 90 days horizon Mfs Growth Fund is expected to generate 1.36 times more return on investment than Mfs Institutional. However, Mfs Growth is 1.36 times more volatile than Mfs Institutional International. It trades about 0.16 of its potential returns per unit of risk. Mfs Institutional International is currently generating about -0.21 per unit of risk. If you would invest 22,087 in Mfs Growth Fund on August 28, 2024 and sell it today you would earn a total of 858.00 from holding Mfs Growth Fund or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Growth Fund vs. Mfs Institutional Internationa
Performance |
| Timeline |
| Mfs Growth Fund |
| Mfs Institutional |
Mfs Growth and Mfs Institutional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Growth and Mfs Institutional
The main advantage of trading using opposite Mfs Growth and Mfs Institutional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Growth position performs unexpectedly, Mfs Institutional 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 Institutional will offset losses from the drop in Mfs Institutional's long position.| Mfs Growth vs. Mfs Value Fund | Mfs Growth vs. Mfs International Value | Mfs Growth vs. Mfs International Diversification | Mfs Growth vs. John Hancock Disciplined |
| Mfs Institutional vs. Franklin Dynatech Fund | Mfs Institutional vs. John Hancock Bond | Mfs Institutional vs. Prudential Total Return | Mfs Institutional vs. Mfs Growth Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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