Correlation Between Mfs Blended and Mfs Total
Can any of the company-specific risk be diversified away by investing in both Mfs Blended and Mfs Total 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 Blended and Mfs Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Blended Research and Mfs Total Return, you can compare the effects of market volatilities on Mfs Blended and Mfs Total 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 Blended with a short position of Mfs Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Blended and Mfs Total.
Diversification Opportunities for Mfs Blended and Mfs Total
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mfs and Mfs is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Blended Research and Mfs Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Total Return and Mfs Blended 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 Blended Research are associated (or correlated) with Mfs Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Total Return has no effect on the direction of Mfs Blended i.e., Mfs Blended and Mfs Total go up and down completely randomly.
Pair Corralation between Mfs Blended and Mfs Total
Assuming the 90 days horizon Mfs Blended Research is expected to generate 2.58 times more return on investment than Mfs Total. However, Mfs Blended is 2.58 times more volatile than Mfs Total Return. It trades about 0.08 of its potential returns per unit of risk. Mfs Total Return is currently generating about 0.07 per unit of risk. If you would invest 1,170 in Mfs Blended Research on June 4, 2025 and sell it today you would earn a total of 459.00 from holding Mfs Blended Research or generate 39.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Blended Research vs. Mfs Total Return
Performance |
| Timeline |
| Mfs Blended Research |
| Mfs Total Return |
Mfs Blended and Mfs Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Blended and Mfs Total
The main advantage of trading using opposite Mfs Blended and Mfs Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Blended position performs unexpectedly, Mfs Total 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 Total will offset losses from the drop in Mfs Total's long position.| Mfs Blended vs. Invesco Global Health | Mfs Blended vs. Tekla Healthcare Investors | Mfs Blended vs. Vanguard Health Care | Mfs Blended vs. Baron Health Care |
| Mfs Total vs. American Funds Conservative | Mfs Total vs. Guidepath Conservative Income | Mfs Total vs. Voya Solution Conservative | Mfs Total vs. Victory Diversified Stock |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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