Correlation Between Mfs Series and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Mfs Series and Mfs Lifetime 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 Series and Mfs Lifetime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Series Trust and Mfs Lifetime 2065, you can compare the effects of market volatilities on Mfs Series and Mfs Lifetime 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 Series with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Series and Mfs Lifetime.
Diversification Opportunities for Mfs Series and Mfs Lifetime
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mfs and Mfs is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Series Trust and Mfs Lifetime 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2065 and Mfs Series 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 Series Trust are associated (or correlated) with Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime 2065 has no effect on the direction of Mfs Series i.e., Mfs Series and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Mfs Series and Mfs Lifetime
Assuming the 90 days horizon Mfs Series is expected to generate 4.33 times less return on investment than Mfs Lifetime. But when comparing it to its historical volatility, Mfs Series Trust is 3.89 times less risky than Mfs Lifetime. It trades about 0.09 of its potential returns per unit of risk. Mfs Lifetime 2065 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 974.00 in Mfs Lifetime 2065 on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Mfs Lifetime 2065 or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Mfs Series Trust vs. Mfs Lifetime 2065
Performance |
| Timeline |
| Mfs Series Trust |
| Mfs Lifetime 2065 |
Mfs Series and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Series and Mfs Lifetime
The main advantage of trading using opposite Mfs Series and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Series position performs unexpectedly, Mfs Lifetime 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 Lifetime will offset losses from the drop in Mfs Lifetime's long position.| Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard 500 Index | Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard Total Stock |
| Mfs Lifetime vs. Aqr Managed Futures | Mfs Lifetime vs. Western Asset Inflation | Mfs Lifetime vs. Asg Managed Futures | Mfs Lifetime vs. Ab Bond Inflation |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |