Correlation Between Mfs Mid and Mfs Aggressive
Can any of the company-specific risk be diversified away by investing in both Mfs Mid and Mfs Aggressive 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 Mid and Mfs Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Mid Cap and Mfs Aggressive Growth, you can compare the effects of market volatilities on Mfs Mid and Mfs Aggressive 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 Mid with a short position of Mfs Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Mid and Mfs Aggressive.
Diversification Opportunities for Mfs Mid and Mfs Aggressive
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mfs and Mfs is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Mid Cap and Mfs Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Aggressive Growth and Mfs Mid 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 Mid Cap are associated (or correlated) with Mfs Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Aggressive Growth has no effect on the direction of Mfs Mid i.e., Mfs Mid and Mfs Aggressive go up and down completely randomly.
Pair Corralation between Mfs Mid and Mfs Aggressive
Assuming the 90 days horizon Mfs Mid Cap is expected to generate 1.84 times more return on investment than Mfs Aggressive. However, Mfs Mid is 1.84 times more volatile than Mfs Aggressive Growth. It trades about 0.45 of its potential returns per unit of risk. Mfs Aggressive Growth is currently generating about 0.3 per unit of risk. If you would invest 2,949 in Mfs Mid Cap on September 3, 2024 and sell it today you would earn a total of 281.00 from holding Mfs Mid Cap or generate 9.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Mid Cap vs. Mfs Aggressive Growth
Performance |
| Timeline |
| Mfs Mid Cap |
| Mfs Aggressive Growth |
Mfs Mid and Mfs Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Mid and Mfs Aggressive
The main advantage of trading using opposite Mfs Mid and Mfs Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Mid position performs unexpectedly, Mfs Aggressive 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 Aggressive will offset losses from the drop in Mfs Aggressive's long position.| Mfs Mid vs. Versatile Bond Portfolio | Mfs Mid vs. Multisector Bond Sma | Mfs Mid vs. Bbh Intermediate Municipal | Mfs Mid vs. Touchstone Premium Yield |
| Mfs Aggressive vs. Calvert Conservative Allocation | Mfs Aggressive vs. Prudential Core Conservative | Mfs Aggressive vs. Evaluator Conservative Rms | Mfs Aggressive vs. American Funds Conservative |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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