Correlation Between Mfs New and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Mfs New 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 Mfs New and Mfs Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs New Discovery and Mfs Research International, you can compare the effects of market volatilities on Mfs New 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 Mfs New with a short position of Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs New and Mfs Research.
Diversification Opportunities for Mfs New and Mfs Research
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mfs and Mfs is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mfs New Discovery and Mfs Research International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research Interna and Mfs New 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 New Discovery 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 Interna has no effect on the direction of Mfs New i.e., Mfs New and Mfs Research go up and down completely randomly.
Pair Corralation between Mfs New and Mfs Research
Assuming the 90 days horizon Mfs New Discovery is expected to generate 1.8 times more return on investment than Mfs Research. However, Mfs New is 1.8 times more volatile than Mfs Research International. It trades about 0.25 of its potential returns per unit of risk. Mfs Research International is currently generating about -0.24 per unit of risk. If you would invest 2,516 in Mfs New Discovery on August 29, 2024 and sell it today you would earn a total of 172.00 from holding Mfs New Discovery or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs New Discovery vs. Mfs Research International
Performance |
| Timeline |
| Mfs New Discovery |
| Mfs Research Interna |
Mfs New and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs New and Mfs Research
The main advantage of trading using opposite Mfs New and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs New 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.| Mfs New vs. Mfs Mid Cap | Mfs New vs. Massachusetts Investors Growth | Mfs New vs. Mfs Growth Fund | Mfs New vs. Mfs Value Fund |
| Mfs Research vs. Mfs Value Fund | Mfs Research vs. Mfs Total Return | Mfs Research vs. Mfs New Discovery | Mfs Research vs. Mfs Total Return |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |