Correlation Between Mfs Research and Mfs Value
Can any of the company-specific risk be diversified away by investing in both Mfs Research and Mfs Value 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 Research and Mfs Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Research International and Mfs Value Fund, you can compare the effects of market volatilities on Mfs Research and Mfs Value 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 Research with a short position of Mfs Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Research and Mfs Value.
Diversification Opportunities for Mfs Research and Mfs Value
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Mfs is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Research International and Mfs Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Value Fund and Mfs Research 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 Research International are associated (or correlated) with Mfs Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Value Fund has no effect on the direction of Mfs Research i.e., Mfs Research and Mfs Value go up and down completely randomly.
Pair Corralation between Mfs Research and Mfs Value
Assuming the 90 days horizon Mfs Research International is expected to under-perform the Mfs Value. In addition to that, Mfs Research is 1.17 times more volatile than Mfs Value Fund. It trades about -0.12 of its total potential returns per unit of risk. Mfs Value Fund is currently generating about 0.08 per unit of volatility. If you would invest 5,237 in Mfs Value Fund on August 29, 2024 and sell it today you would earn a total of 182.00 from holding Mfs Value Fund or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Research International vs. Mfs Value Fund
Performance |
| Timeline |
| Mfs Research Interna |
| Mfs Value Fund |
Mfs Research and Mfs Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Research and Mfs Value
The main advantage of trading using opposite Mfs Research and Mfs Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Research position performs unexpectedly, Mfs Value 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 Value will offset losses from the drop in Mfs Value's long position.| Mfs Research vs. Mid Cap Growth Profund | Mfs Research vs. Queens Road Small | Mfs Research vs. Hennessy Nerstone Mid | Mfs Research vs. Lord Abbett Small |
| Mfs Value vs. Fidelity Advisor Real | Mfs Value vs. Redwood Real Estate | Mfs Value vs. Dunham Real Estate | Mfs Value vs. Jhancock 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |