Correlation Between Mfs International and Issachar Fund

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Mfs International and Issachar Fund 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 International and Issachar Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs International Value and Issachar Fund Class, you can compare the effects of market volatilities on Mfs International and Issachar Fund 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 International with a short position of Issachar Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs International and Issachar Fund.

Diversification Opportunities for Mfs International and Issachar Fund

-0.59
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Mfs and Issachar is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mfs International Value and Issachar Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Issachar Fund Class and Mfs International 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 International Value are associated (or correlated) with Issachar Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Issachar Fund Class has no effect on the direction of Mfs International i.e., Mfs International and Issachar Fund go up and down completely randomly.

Pair Corralation between Mfs International and Issachar Fund

Assuming the 90 days horizon Mfs International Value is expected to generate 1.13 times more return on investment than Issachar Fund. However, Mfs International is 1.13 times more volatile than Issachar Fund Class. It trades about 0.07 of its potential returns per unit of risk. Issachar Fund Class is currently generating about 0.01 per unit of risk. If you would invest  3,162  in Mfs International Value on September 12, 2024 and sell it today you would earn a total of  976.00  from holding Mfs International Value or generate 30.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Mfs International Value  vs.  Issachar Fund Class

 Performance 
       Timeline  
Mfs International Value 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Mfs International Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Mfs International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Issachar Fund Class 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Issachar Fund Class are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Issachar Fund may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Mfs International and Issachar Fund Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mfs International and Issachar Fund

The main advantage of trading using opposite Mfs International and Issachar Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs International position performs unexpectedly, Issachar Fund 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 Issachar Fund will offset losses from the drop in Issachar Fund's long position.
The idea behind Mfs International Value and Issachar Fund Class pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation