Correlation Between Mfs Technology and Sit Global
Can any of the company-specific risk be diversified away by investing in both Mfs Technology and Sit Global 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 Sit Global 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 Sit Global Dividend, you can compare the effects of market volatilities on Mfs Technology and Sit Global 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 Sit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Technology and Sit Global.
Diversification Opportunities for Mfs Technology and Sit Global
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mfs and Sit is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Technology Fund and Sit Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Global Dividend 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 Sit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Global Dividend has no effect on the direction of Mfs Technology i.e., Mfs Technology and Sit Global go up and down completely randomly.
Pair Corralation between Mfs Technology and Sit Global
Assuming the 90 days horizon Mfs Technology Fund is expected to generate 1.83 times more return on investment than Sit Global. However, Mfs Technology is 1.83 times more volatile than Sit Global Dividend. It trades about 0.08 of its potential returns per unit of risk. Sit Global Dividend is currently generating about 0.1 per unit of risk. If you would invest 4,530 in Mfs Technology Fund on September 1, 2024 and sell it today you would earn a total of 654.00 from holding Mfs Technology Fund or generate 14.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Mfs Technology Fund vs. Sit Global Dividend
Performance |
| Timeline |
| Mfs Technology |
| Sit Global Dividend |
Mfs Technology and Sit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Technology and Sit Global
The main advantage of trading using opposite Mfs Technology and Sit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Technology position performs unexpectedly, Sit Global 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 Sit Global will offset losses from the drop in Sit Global's long position.| Mfs Technology vs. Qs Moderate Growth | Mfs Technology vs. Transamerica Cleartrack Retirement | Mfs Technology vs. Franklin Lifesmart Retirement | Mfs Technology vs. Jp Morgan Smartretirement |
| Sit Global vs. Mfs Technology Fund | Sit Global vs. Pgim Jennison Technology | Sit Global vs. Blackrock Science Technology | Sit Global vs. Goldman Sachs Technology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| CEOs Directory Screen CEOs from public companies around the world |