Correlation Between Mfs International and Chase Growth
Can any of the company-specific risk be diversified away by investing in both Mfs International and Chase Growth 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 Chase Growth 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 Chase Growth Fund, you can compare the effects of market volatilities on Mfs International and Chase Growth 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 Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs International and Chase Growth.
Diversification Opportunities for Mfs International and Chase Growth
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Chase is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Mfs International Value and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth 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 Chase Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase Growth has no effect on the direction of Mfs International i.e., Mfs International and Chase Growth go up and down completely randomly.
Pair Corralation between Mfs International and Chase Growth
Assuming the 90 days horizon Mfs International Value is expected to under-perform the Chase Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mfs International Value is 1.14 times less risky than Chase Growth. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Chase Growth Fund is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,644 in Chase Growth Fund on September 1, 2024 and sell it today you would earn a total of 118.00 from holding Chase Growth Fund or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mfs International Value vs. Chase Growth Fund
Performance |
| Timeline |
| Mfs International Value |
| Chase Growth |
Mfs International and Chase Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs International and Chase Growth
The main advantage of trading using opposite Mfs International and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs International position performs unexpectedly, Chase Growth 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 Chase Growth will offset losses from the drop in Chase Growth's long position.| Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific Growth Fund | Mfs International vs. HUMANA INC | Mfs International vs. Aquagold International |
| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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