Correlation Between Mfs International and Value Fund
Can any of the company-specific risk be diversified away by investing in both Mfs International and Value Fund 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 International and Value Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs International New and Value Fund I, you can compare the effects of market volatilities on Mfs International and Value Fund 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 International with a short position of Value Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs International and Value Fund.
Diversification Opportunities for Mfs International and Value Fund
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and Value is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Mfs International New and Value Fund I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund I and Mfs International 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 International New are associated (or correlated) with Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund I has no effect on the direction of Mfs International i.e., Mfs International and Value Fund go up and down completely randomly.
Pair Corralation between Mfs International and Value Fund
Assuming the 90 days horizon Mfs International New is expected to generate 0.87 times more return on investment than Value Fund. However, Mfs International New is 1.15 times less risky than Value Fund. It trades about 0.02 of its potential returns per unit of risk. Value Fund I is currently generating about 0.02 per unit of risk. If you would invest 2,893 in Mfs International New on November 19, 2024 and sell it today you would earn a total of 197.00 from holding Mfs International New or generate 6.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs International New vs. Value Fund I
Performance |
| Timeline |
| Mfs International New |
| Value Fund I |
Mfs International and Value Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs International and Value Fund
The main advantage of trading using opposite Mfs International and Value Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs International position performs unexpectedly, Value Fund 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 Value Fund will offset losses from the drop in Value Fund's long position.| Mfs International vs. The Gamco Global | Mfs International vs. Columbia Vertible Securities | Mfs International vs. Miller Vertible Bond | Mfs International vs. Teton Vertible Securities |
| Value Fund vs. Stone Ridge Diversified | Value Fund vs. Lord Abbett Diversified | Value Fund vs. Vanguard Diversified Equity | Value Fund vs. Wilmington Diversified Income |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |