Correlation Between Mfs Lifetime and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Growth Strategy 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 Lifetime and Growth Strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Lifetime 2060 and Growth Strategy Fund, you can compare the effects of market volatilities on Mfs Lifetime and Growth Strategy 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 Lifetime with a short position of Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Growth Strategy.
Diversification Opportunities for Mfs Lifetime and Growth Strategy
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and GROWTH is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2060 and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy and Mfs Lifetime 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 Lifetime 2060 are associated (or correlated) with Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Growth Strategy go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Growth Strategy
Assuming the 90 days horizon Mfs Lifetime 2060 is expected to generate 1.08 times more return on investment than Growth Strategy. However, Mfs Lifetime is 1.08 times more volatile than Growth Strategy Fund. It trades about 0.08 of its potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.07 per unit of risk. If you would invest 1,327 in Mfs Lifetime 2060 on September 4, 2024 and sell it today you would earn a total of 417.00 from holding Mfs Lifetime 2060 or generate 31.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Lifetime 2060 vs. Growth Strategy Fund
Performance |
| Timeline |
| Mfs Lifetime 2060 |
| Growth Strategy |
Mfs Lifetime and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Growth Strategy
The main advantage of trading using opposite Mfs Lifetime and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Growth Strategy 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 Growth Strategy will offset losses from the drop in Growth Strategy's long position.| Mfs Lifetime vs. Delaware Limited Term Diversified | Mfs Lifetime vs. Oppenheimer International Diversified | Mfs Lifetime vs. Evaluator Conservative Rms | Mfs Lifetime vs. Fidelity Advisor Diversified |
| Growth Strategy vs. International Developed Markets | Growth Strategy vs. Global Real Estate | Growth Strategy vs. Global Real Estate | Growth Strategy vs. Global Real Estate |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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