Correlation Between Mfs International and Lind Capital
Can any of the company-specific risk be diversified away by investing in both Mfs International and Lind Capital 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 Lind Capital 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 Lind Capital Partners, you can compare the effects of market volatilities on Mfs International and Lind Capital 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 Lind Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs International and Lind Capital.
Diversification Opportunities for Mfs International and Lind Capital
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mfs and Lind is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mfs International Value and Lind Capital Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lind Capital Partners 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 Lind Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lind Capital Partners has no effect on the direction of Mfs International i.e., Mfs International and Lind Capital go up and down completely randomly.
Pair Corralation between Mfs International and Lind Capital
Assuming the 90 days horizon Mfs International Value is expected to under-perform the Lind Capital. In addition to that, Mfs International is 2.78 times more volatile than Lind Capital Partners. It trades about -0.07 of its total potential returns per unit of risk. Lind Capital Partners is currently generating about 0.13 per unit of volatility. If you would invest 894.00 in Lind Capital Partners on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Lind Capital Partners or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mfs International Value vs. Lind Capital Partners
Performance |
| Timeline |
| Mfs International Value |
| Lind Capital Partners |
Mfs International and Lind Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs International and Lind Capital
The main advantage of trading using opposite Mfs International and Lind Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs International position performs unexpectedly, Lind Capital 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 Lind Capital will offset losses from the drop in Lind Capital's long position.| Mfs International vs. Oil Gas Ultrasector | Mfs International vs. Goehring Rozencwajg Resources | Mfs International vs. Adams Natural Resources | Mfs International vs. Invesco Energy Fund |
| Lind Capital vs. Vanguard Total Stock | Lind Capital vs. Vanguard 500 Index | Lind Capital vs. Vanguard Total Stock | Lind Capital vs. Vanguard Total Stock |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |