Correlation Between Saat Moderate and Mfs Emerging
Can any of the company-specific risk be diversified away by investing in both Saat Moderate and Mfs Emerging 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 Saat Moderate and Mfs Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Moderate Strategy and Mfs Emerging Markets, you can compare the effects of market volatilities on Saat Moderate and Mfs Emerging 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 Saat Moderate with a short position of Mfs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Mfs Emerging.
Diversification Opportunities for Saat Moderate and Mfs Emerging
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saat and Mfs is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and Mfs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Emerging Markets and Saat Moderate 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 Saat Moderate Strategy are associated (or correlated) with Mfs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Emerging Markets has no effect on the direction of Saat Moderate i.e., Saat Moderate and Mfs Emerging go up and down completely randomly.
Pair Corralation between Saat Moderate and Mfs Emerging
Assuming the 90 days horizon Saat Moderate Strategy is expected to generate 0.58 times more return on investment than Mfs Emerging. However, Saat Moderate Strategy is 1.74 times less risky than Mfs Emerging. It trades about 0.02 of its potential returns per unit of risk. Mfs Emerging Markets is currently generating about -0.15 per unit of risk. If you would invest 1,190 in Saat Moderate Strategy on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Saat Moderate Strategy or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Moderate Strategy vs. Mfs Emerging Markets
Performance |
| Timeline |
| Saat Moderate Strategy |
| Mfs Emerging Markets |
Saat Moderate and Mfs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Moderate and Mfs Emerging
The main advantage of trading using opposite Saat Moderate and Mfs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate position performs unexpectedly, Mfs Emerging 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 Emerging will offset losses from the drop in Mfs Emerging's long position.| Saat Moderate vs. Simt Multi Asset Accumulation | Saat Moderate vs. Saat Market Growth | Saat Moderate vs. Simt Real Return | Saat Moderate vs. Simt Small Cap |
| Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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