Correlation Between MFS Active and Simplify Exchange
Can any of the company-specific risk be diversified away by investing in both MFS Active and Simplify Exchange 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 Active and Simplify Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Active Core and Simplify Exchange Traded, you can compare the effects of market volatilities on MFS Active and Simplify Exchange 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 Active with a short position of Simplify Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Active and Simplify Exchange.
Diversification Opportunities for MFS Active and Simplify Exchange
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MFS and Simplify is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding MFS Active Core and Simplify Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Exchange Traded and MFS Active 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 Active Core are associated (or correlated) with Simplify Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Exchange Traded has no effect on the direction of MFS Active i.e., MFS Active and Simplify Exchange go up and down completely randomly.
Pair Corralation between MFS Active and Simplify Exchange
Given the investment horizon of 90 days MFS Active Core is expected to under-perform the Simplify Exchange. But the etf apears to be less risky and, when comparing its historical volatility, MFS Active Core is 1.01 times less risky than Simplify Exchange. The etf trades about -0.16 of its potential returns per unit of risk. The Simplify Exchange Traded is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 2,528 in Simplify Exchange Traded on January 1, 2025 and sell it today you would lose (8.00) from holding Simplify Exchange Traded or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Active Core vs. Simplify Exchange Traded
Performance |
| Timeline |
| MFS Active Core |
| Simplify Exchange Traded |
MFS Active and Simplify Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Active and Simplify Exchange
The main advantage of trading using opposite MFS Active and Simplify Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Active position performs unexpectedly, Simplify Exchange 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 Simplify Exchange will offset losses from the drop in Simplify Exchange's long position.| MFS Active vs. Infinity Natural Resources, | ||
| MFS Active vs. Vanguard Total Stock | ||
| MFS Active vs. SPDR SP 500 | ||
| MFS Active vs. iShares Core SP |
| Simplify Exchange vs. iShares JP Morgan | ||
| Simplify Exchange vs. Invesco Emerging Markets | ||
| Simplify Exchange vs. VanEck Emerging Markets | ||
| Simplify Exchange vs. iShares JP Morgan |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |