Correlation Between Mfs International and Mfs Blended
Can any of the company-specific risk be diversified away by investing in both Mfs International and Mfs Blended 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 Mfs Blended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs International Large and Mfs Blended Research, you can compare the effects of market volatilities on Mfs International and Mfs Blended 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 Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs International and Mfs Blended.
Diversification Opportunities for Mfs International and Mfs Blended
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Mfs is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mfs International Large and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research 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 Large are associated (or correlated) with Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of Mfs International i.e., Mfs International and Mfs Blended go up and down completely randomly.
Pair Corralation between Mfs International and Mfs Blended
Assuming the 90 days horizon Mfs International is expected to generate 11.61 times less return on investment than Mfs Blended. In addition to that, Mfs International is 1.03 times more volatile than Mfs Blended Research. It trades about 0.03 of its total potential returns per unit of risk. Mfs Blended Research is currently generating about 0.34 per unit of volatility. If you would invest 3,913 in Mfs Blended Research on September 1, 2024 and sell it today you would earn a total of 213.00 from holding Mfs Blended Research or generate 5.44% 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 Large vs. Mfs Blended Research
Performance |
| Timeline |
| Mfs International Large |
| Mfs Blended Research |
Mfs International and Mfs Blended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs International and Mfs Blended
The main advantage of trading using opposite Mfs International and Mfs Blended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs International position performs unexpectedly, Mfs Blended 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 Blended will offset losses from the drop in Mfs Blended's long position.| Mfs International vs. Mfs Prudent Investor | Mfs International vs. Mfs Prudent Investor | Mfs International vs. Mfs Prudent Investor | Mfs International vs. Mfs Prudent Investor |
| Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |