Correlation Between Mfs Technology and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Mfs Technology and Amg Managers 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 Technology and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Technology Fund and Amg Managers Doubleline, you can compare the effects of market volatilities on Mfs Technology and Amg Managers 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 Technology with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Technology and Amg Managers.
Diversification Opportunities for Mfs Technology and Amg Managers
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mfs and Amg is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Technology Fund and Amg Managers Doubleline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Doubleline and Mfs Technology 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 Technology Fund are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Doubleline has no effect on the direction of Mfs Technology i.e., Mfs Technology and Amg Managers go up and down completely randomly.
Pair Corralation between Mfs Technology and Amg Managers
Assuming the 90 days horizon Mfs Technology Fund is expected to generate 3.71 times more return on investment than Amg Managers. However, Mfs Technology is 3.71 times more volatile than Amg Managers Doubleline. It trades about 0.08 of its potential returns per unit of risk. Amg Managers Doubleline is currently generating about 0.07 per unit of risk. If you would invest 3,843 in Mfs Technology Fund on September 12, 2024 and sell it today you would earn a total of 1,477 from holding Mfs Technology Fund or generate 38.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Technology Fund vs. Amg Managers Doubleline
Performance |
| Timeline |
| Mfs Technology |
| Amg Managers Doubleline |
Mfs Technology and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Technology and Amg Managers
The main advantage of trading using opposite Mfs Technology and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Technology position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Mfs Technology vs. Vanguard Information Technology | Mfs Technology vs. Technology Portfolio Technology | Mfs Technology vs. Fidelity Select Semiconductors | Mfs Technology vs. Software And It |
| Amg Managers vs. Red Oak Technology | Amg Managers vs. Invesco Technology Fund | Amg Managers vs. Vanguard Information Technology | Amg Managers vs. Mfs Technology 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |