Correlation Between International Growth and Mfs Mid
Can any of the company-specific risk be diversified away by investing in both International Growth and Mfs Mid 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 International Growth and Mfs Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Growth Fund and Mfs Mid Cap, you can compare the effects of market volatilities on International Growth and Mfs Mid 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 International Growth with a short position of Mfs Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Growth and Mfs Mid.
Diversification Opportunities for International Growth and Mfs Mid
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and Mfs is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding International Growth Fund and Mfs Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Mid Cap and International Growth 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 International Growth Fund are associated (or correlated) with Mfs Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Mid Cap has no effect on the direction of International Growth i.e., International Growth and Mfs Mid go up and down completely randomly.
Pair Corralation between International Growth and Mfs Mid
Assuming the 90 days horizon International Growth is expected to generate 1.13 times less return on investment than Mfs Mid. But when comparing it to its historical volatility, International Growth Fund is 1.19 times less risky than Mfs Mid. It trades about 0.11 of its potential returns per unit of risk. Mfs Mid Cap is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,897 in Mfs Mid Cap on October 21, 2024 and sell it today you would earn a total of 50.00 from holding Mfs Mid Cap or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Growth Fund vs. Mfs Mid Cap
Performance |
| Timeline |
| International Growth |
| Mfs Mid Cap |
International Growth and Mfs Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Growth and Mfs Mid
The main advantage of trading using opposite International Growth and Mfs Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Growth position performs unexpectedly, Mfs Mid 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 Mid will offset losses from the drop in Mfs Mid's long position.| International Growth vs. Victory Rs Partners | International Growth vs. American Century Etf | International Growth vs. Mid Cap 15x Strategy | International Growth vs. Heartland Value Plus |
| Mfs Mid vs. Columbia Global Technology | Mfs Mid vs. Invesco Technology Fund | Mfs Mid vs. Red Oak Technology | Mfs Mid vs. Blackrock Science 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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