Correlation Between Mfs Series and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Mfs Series 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 Series 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 Series Trust and Mfs Research Fund, you can compare the effects of market volatilities on Mfs Series 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 Series with a short position of Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Series and Mfs Research.
Diversification Opportunities for Mfs Series and Mfs Research
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mfs and Mfs is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Series Trust and Mfs Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research 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 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 has no effect on the direction of Mfs Series i.e., Mfs Series and Mfs Research go up and down completely randomly.
Pair Corralation between Mfs Series and Mfs Research
Assuming the 90 days horizon Mfs Series is expected to generate 112.17 times less return on investment than Mfs Research. But when comparing it to its historical volatility, Mfs Series Trust is 2.42 times less risky than Mfs Research. It trades about 0.0 of its potential returns per unit of risk. Mfs Research Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,655 in Mfs Research Fund on September 1, 2024 and sell it today you would earn a total of 1,576 from holding Mfs Research Fund or generate 33.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.18% |
| Values | Daily Returns |
Mfs Series Trust vs. Mfs Research Fund
Performance |
| Timeline |
| Mfs Series Trust |
| Mfs Research |
Mfs Series and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Series and Mfs Research
The main advantage of trading using opposite Mfs Series and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Series 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 Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard 500 Index | Mfs Series vs. Vanguard Total Stock | Mfs Series vs. Vanguard Total Stock |
| Mfs Research vs. Ivy Energy Fund | Mfs Research vs. Calvert Global Energy | Mfs Research vs. Oil Gas Ultrasector | Mfs Research vs. Dreyfus Natural Resources |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |