Correlation Between Mfs Core and Mfs Global
Can any of the company-specific risk be diversified away by investing in both Mfs Core and Mfs Global 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 Core and Mfs Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs E Equity and Mfs Global Real, you can compare the effects of market volatilities on Mfs Core and Mfs Global 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 Core with a short position of Mfs Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Core and Mfs Global.
Diversification Opportunities for Mfs Core and Mfs Global
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mfs and Mfs is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mfs E Equity and Mfs Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Global Real and Mfs Core 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 E Equity are associated (or correlated) with Mfs Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Global Real has no effect on the direction of Mfs Core i.e., Mfs Core and Mfs Global go up and down completely randomly.
Pair Corralation between Mfs Core and Mfs Global
Assuming the 90 days horizon Mfs E Equity is expected to generate 0.82 times more return on investment than Mfs Global. However, Mfs E Equity is 1.23 times less risky than Mfs Global. It trades about 0.11 of its potential returns per unit of risk. Mfs Global Real is currently generating about 0.02 per unit of risk. If you would invest 3,842 in Mfs E Equity on September 3, 2024 and sell it today you would earn a total of 1,814 from holding Mfs E Equity or generate 47.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs E Equity vs. Mfs Global Real
Performance |
| Timeline |
| Mfs E Equity |
| Mfs Global Real |
Mfs Core and Mfs Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Core and Mfs Global
The main advantage of trading using opposite Mfs Core and Mfs Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Core position performs unexpectedly, Mfs Global 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 Global will offset losses from the drop in Mfs Global's long position.| Mfs Core vs. Mfs Growth Fund | Mfs Core vs. Mfs Mid Cap | Mfs Core vs. Mfs Porate Bond | Mfs Core vs. Mfs Total Return |
| Mfs Global vs. Dfa Global Real | Mfs Global vs. Vanguard Global Ex Us | Mfs Global vs. Global Real Estate | Mfs Global vs. Global Real Estate |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |