Correlation Between Mfs Intrinsic and Nasdaq 100
Can any of the company-specific risk be diversified away by investing in both Mfs Intrinsic and Nasdaq 100 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 Nasdaq 100 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 Nasdaq 100 Index Fund, you can compare the effects of market volatilities on Mfs Intrinsic and Nasdaq 100 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 Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Intrinsic and Nasdaq 100.
Diversification Opportunities for Mfs Intrinsic and Nasdaq 100
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and Nasdaq is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Intrinsic Value and Nasdaq 100 Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Index 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 Nasdaq 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 Index has no effect on the direction of Mfs Intrinsic i.e., Mfs Intrinsic and Nasdaq 100 go up and down completely randomly.
Pair Corralation between Mfs Intrinsic and Nasdaq 100
Assuming the 90 days horizon Mfs Intrinsic is expected to generate 1.35 times less return on investment than Nasdaq 100. But when comparing it to its historical volatility, Mfs Intrinsic Value is 1.45 times less risky than Nasdaq 100. It trades about 0.09 of its potential returns per unit of risk. Nasdaq 100 Index Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,648 in Nasdaq 100 Index Fund on August 29, 2024 and sell it today you would earn a total of 567.00 from holding Nasdaq 100 Index Fund or generate 12.2% 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. Nasdaq 100 Index Fund
Performance |
| Timeline |
| Mfs Intrinsic Value |
| Nasdaq 100 Index |
Mfs Intrinsic and Nasdaq 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Intrinsic and Nasdaq 100
The main advantage of trading using opposite Mfs Intrinsic and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Intrinsic position performs unexpectedly, Nasdaq 100 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 Nasdaq 100 will offset losses from the drop in Nasdaq 100's long position.| Mfs Intrinsic vs. Nasdaq 100 Index Fund | Mfs Intrinsic vs. Versatile Bond Portfolio | Mfs Intrinsic vs. Ab Value Fund | Mfs Intrinsic vs. Small Cap Stock |
| Nasdaq 100 vs. Balanced Fund Retail | Nasdaq 100 vs. Rbc Global Equity | Nasdaq 100 vs. Calamos Global Equity | Nasdaq 100 vs. Touchstone International 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |