Correlation Between Mfs Research and Mfs Growth
Can any of the company-specific risk be diversified away by investing in both Mfs Research and Mfs Growth 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 Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Research Fund and Mfs Growth Fund, you can compare the effects of market volatilities on Mfs Research and Mfs Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Research and Mfs Growth.
Diversification Opportunities for Mfs Research and Mfs Growth
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mfs and Mfs is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Research Fund and Mfs Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Growth 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 Fund are associated (or correlated) with Mfs Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Growth Fund has no effect on the direction of Mfs Research i.e., Mfs Research and Mfs Growth go up and down completely randomly.
Pair Corralation between Mfs Research and Mfs Growth
Assuming the 90 days horizon Mfs Research Fund is expected to generate 0.68 times more return on investment than Mfs Growth. However, Mfs Research Fund is 1.46 times less risky than Mfs Growth. It trades about -0.13 of its potential returns per unit of risk. Mfs Growth Fund is currently generating about -0.11 per unit of risk. If you would invest 5,665 in Mfs Research Fund on November 27, 2024 and sell it today you would lose (96.00) from holding Mfs Research Fund or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Research Fund vs. Mfs Growth Fund
Performance |
| Timeline |
| Mfs Research |
| Mfs Growth Fund |
Mfs Research and Mfs Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Research and Mfs Growth
The main advantage of trading using opposite Mfs Research and Mfs Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Research position performs unexpectedly, Mfs Growth 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 Growth will offset losses from the drop in Mfs Growth's long position.| Mfs Research vs. Transamerica High Yield | Mfs Research vs. Intal High Relative | Mfs Research vs. Goldman Sachs High | Mfs Research vs. Aqr Alternative Risk |
| Mfs Growth vs. Transamerica Financial Life | Mfs Growth vs. Gabelli Global Financial | Mfs Growth vs. Fidelity Advisor Financial | Mfs Growth vs. Icon Financial Fund |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |