Correlation Between Mfs Technology and Amg River
Can any of the company-specific risk be diversified away by investing in both Mfs Technology and Amg River 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 River 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 River Road, you can compare the effects of market volatilities on Mfs Technology and Amg River 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 River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Technology and Amg River.
Diversification Opportunities for Mfs Technology and Amg River
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mfs and Amg is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Technology Fund and Amg River Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg River Road 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 River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg River Road has no effect on the direction of Mfs Technology i.e., Mfs Technology and Amg River go up and down completely randomly.
Pair Corralation between Mfs Technology and Amg River
Assuming the 90 days horizon Mfs Technology Fund is expected to under-perform the Amg River. In addition to that, Mfs Technology is 2.07 times more volatile than Amg River Road. It trades about -0.22 of its total potential returns per unit of risk. Amg River Road is currently generating about -0.04 per unit of volatility. If you would invest 1,353 in Amg River Road on January 5, 2025 and sell it today you would lose (15.00) from holding Amg River Road or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Technology Fund vs. Amg River Road
Performance |
| Timeline |
| Mfs Technology |
| Amg River Road |
Mfs Technology and Amg River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Technology and Amg River
The main advantage of trading using opposite Mfs Technology and Amg River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Technology position performs unexpectedly, Amg River 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 River will offset losses from the drop in Amg River's long position.| Mfs Technology vs. Tiaa Cref Lifecycle Retirement | Mfs Technology vs. Oklahoma College Savings | Mfs Technology vs. Virtus Dfa 2040 | Mfs Technology vs. Pgim Conservative Retirement |
| Amg River vs. Amg Yacktman Focused | Amg River vs. Heartland Value Plus | Amg River vs. Common Stock Fund | Amg River vs. Perkins Mid Cap |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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