Correlation Between Mfs Intrinsic and Mfs Growth
Can any of the company-specific risk be diversified away by investing in both Mfs Intrinsic and Mfs Growth 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 Intrinsic and Mfs Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Intrinsic Value and Mfs Growth Fund, you can compare the effects of market volatilities on Mfs Intrinsic and Mfs Growth 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 Intrinsic with a short position of Mfs Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Intrinsic and Mfs Growth.
Diversification Opportunities for Mfs Intrinsic and Mfs Growth
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and Mfs is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Intrinsic Value and Mfs Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Growth Fund and Mfs Intrinsic 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 Intrinsic Value are associated (or correlated) with Mfs Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Growth Fund has no effect on the direction of Mfs Intrinsic i.e., Mfs Intrinsic and Mfs Growth go up and down completely randomly.
Pair Corralation between Mfs Intrinsic and Mfs Growth
Assuming the 90 days horizon Mfs Intrinsic is expected to generate 1.19 times less return on investment than Mfs Growth. But when comparing it to its historical volatility, Mfs Intrinsic Value is 1.3 times less risky than Mfs Growth. It trades about 0.33 of its potential returns per unit of risk. Mfs Growth Fund is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 21,616 in Mfs Growth Fund on September 1, 2024 and sell it today you would earn a total of 1,333 from holding Mfs Growth Fund or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Intrinsic Value vs. Mfs Growth Fund
Performance |
| Timeline |
| Mfs Intrinsic Value |
| Mfs Growth Fund |
Mfs Intrinsic and Mfs Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Intrinsic and Mfs Growth
The main advantage of trading using opposite Mfs Intrinsic and Mfs Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Intrinsic position performs unexpectedly, Mfs Growth 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 Growth will offset losses from the drop in Mfs Growth's long position.| Mfs Intrinsic vs. Advent Claymore Convertible | Mfs Intrinsic vs. Calamos Dynamic Convertible | Mfs Intrinsic vs. Columbia Vertible Securities | Mfs Intrinsic vs. Fidelity Sai Convertible |
| Mfs Growth vs. Mfs Prudent Investor | Mfs Growth vs. Mfs Prudent Investor | Mfs Growth vs. Mfs Prudent Investor | Mfs Growth 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |