Correlation Between Siit Global and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Siit Global and Mfs Lifetime 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 Siit Global and Mfs Lifetime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Global Managed and Mfs Lifetime 2040, you can compare the effects of market volatilities on Siit Global and Mfs Lifetime 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 Siit Global with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Global and Mfs Lifetime.
Diversification Opportunities for Siit Global and Mfs Lifetime
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Mfs is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Mfs Lifetime 2040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2040 and Siit Global 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 Siit Global Managed are associated (or correlated) with Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime 2040 has no effect on the direction of Siit Global i.e., Siit Global and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Siit Global and Mfs Lifetime
Assuming the 90 days horizon Siit Global is expected to generate 1.26 times less return on investment than Mfs Lifetime. But when comparing it to its historical volatility, Siit Global Managed is 1.17 times less risky than Mfs Lifetime. It trades about 0.14 of its potential returns per unit of risk. Mfs Lifetime 2040 is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,955 in Mfs Lifetime 2040 on September 12, 2024 and sell it today you would earn a total of 85.00 from holding Mfs Lifetime 2040 or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Siit Global Managed vs. Mfs Lifetime 2040
Performance |
| Timeline |
| Siit Global Managed |
| Mfs Lifetime 2040 |
Siit Global and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Global and Mfs Lifetime
The main advantage of trading using opposite Siit Global and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Global position performs unexpectedly, Mfs Lifetime 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 Lifetime will offset losses from the drop in Mfs Lifetime's long position.| Siit Global vs. Qs Growth Fund | Siit Global vs. Ab Value Fund | Siit Global vs. Century Small Cap | Siit Global vs. T Rowe Price |
| Mfs Lifetime vs. Us Vector Equity | Mfs Lifetime vs. Us Strategic Equity | Mfs Lifetime vs. Dodge International Stock | Mfs Lifetime vs. Huber Capital Equity |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |