Correlation Between Massachusetts Investors and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Massachusetts Investors and Mfs Research 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 Massachusetts Investors and Mfs Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massachusetts Investors Trust and Mfs Research Fund, you can compare the effects of market volatilities on Massachusetts Investors and Mfs Research 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 Massachusetts Investors with a short position of Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massachusetts Investors and Mfs Research.
Diversification Opportunities for Massachusetts Investors and Mfs Research
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Massachusetts and Mfs is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Massachusetts Investors Trust and Mfs Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research and Massachusetts Investors 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 Massachusetts Investors Trust are associated (or correlated) with Mfs Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research has no effect on the direction of Massachusetts Investors i.e., Massachusetts Investors and Mfs Research go up and down completely randomly.
Pair Corralation between Massachusetts Investors and Mfs Research
Assuming the 90 days horizon Massachusetts Investors is expected to generate 1.09 times less return on investment than Mfs Research. But when comparing it to its historical volatility, Massachusetts Investors Trust is 1.07 times less risky than Mfs Research. It trades about 0.35 of its potential returns per unit of risk. Mfs Research Fund is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 6,196 in Mfs Research Fund on September 1, 2024 and sell it today you would earn a total of 345.00 from holding Mfs Research Fund or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massachusetts Investors Trust vs. Mfs Research Fund
Performance |
| Timeline |
| Massachusetts Investors |
| Mfs Research |
Massachusetts Investors and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massachusetts Investors and Mfs Research
The main advantage of trading using opposite Massachusetts Investors and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massachusetts Investors position performs unexpectedly, Mfs Research 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 Mfs Research will offset losses from the drop in Mfs Research's long position.| Massachusetts Investors vs. Mfs Prudent Investor | Massachusetts Investors vs. Mfs Prudent Investor | Massachusetts Investors vs. Mfs Prudent Investor | Massachusetts Investors vs. Mfs Prudent Investor |
| Mfs Research vs. Mfs Growth Fund | Mfs Research vs. Massachusetts Investors Trust | Mfs Research vs. Mfs Total Return | Mfs Research vs. Massachusetts Investors Growth |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |