Correlation Between WisdomTree Managed and MFS Active
Can any of the company-specific risk be diversified away by investing in both WisdomTree Managed and MFS Active 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 WisdomTree Managed and MFS Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Managed Futures and MFS Active Exchange, you can compare the effects of market volatilities on WisdomTree Managed and MFS Active 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 WisdomTree Managed with a short position of MFS Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and MFS Active.
Diversification Opportunities for WisdomTree Managed and MFS Active
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and MFS is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and MFS Active Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Active Exchange and WisdomTree Managed 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 WisdomTree Managed Futures are associated (or correlated) with MFS Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Active Exchange has no effect on the direction of WisdomTree Managed i.e., WisdomTree Managed and MFS Active go up and down completely randomly.
Pair Corralation between WisdomTree Managed and MFS Active
Given the investment horizon of 90 days WisdomTree Managed is expected to generate 1.5 times less return on investment than MFS Active. But when comparing it to its historical volatility, WisdomTree Managed Futures is 1.02 times less risky than MFS Active. It trades about 0.08 of its potential returns per unit of risk. MFS Active Exchange is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,447 in MFS Active Exchange on November 2, 2025 and sell it today you would earn a total of 129.00 from holding MFS Active Exchange or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Managed Futures vs. MFS Active Exchange
Performance |
| Timeline |
| WisdomTree Managed |
| MFS Active Exchange |
WisdomTree Managed and MFS Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Managed and MFS Active
The main advantage of trading using opposite WisdomTree Managed and MFS Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Managed position performs unexpectedly, MFS Active 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 Active will offset losses from the drop in MFS Active's long position.| WisdomTree Managed vs. Elevation Series Trust | WisdomTree Managed vs. Exchange Traded Concepts | WisdomTree Managed vs. Innovator MSCI EAFE | WisdomTree Managed vs. VanEck Inflation Allocation |
| MFS Active vs. FT Vest Equity | MFS Active vs. Northern Lights | MFS Active vs. Diamond Hill Funds | MFS Active vs. Dimensional International High |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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