Correlation Between Mfs Blended and Mfs Strategic
Can any of the company-specific risk be diversified away by investing in both Mfs Blended and Mfs Strategic 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 Strategic 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 Strategic Income, you can compare the effects of market volatilities on Mfs Blended and Mfs Strategic 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 Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Blended and Mfs Strategic.
Diversification Opportunities for Mfs Blended and Mfs Strategic
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mfs and MFS is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Blended Research and Mfs Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Strategic Income 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 Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Strategic Income has no effect on the direction of Mfs Blended i.e., Mfs Blended and Mfs Strategic go up and down completely randomly.
Pair Corralation between Mfs Blended and Mfs Strategic
Assuming the 90 days horizon Mfs Blended Research is expected to generate 4.18 times more return on investment than Mfs Strategic. However, Mfs Blended is 4.18 times more volatile than Mfs Strategic Income. It trades about 0.15 of its potential returns per unit of risk. Mfs Strategic Income is currently generating about 0.17 per unit of risk. If you would invest 1,660 in Mfs Blended Research on August 31, 2025 and sell it today you would earn a total of 145.00 from holding Mfs Blended Research or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Mfs Blended Research vs. Mfs Strategic Income
Performance |
| Timeline |
| Mfs Blended Research |
| Mfs Strategic Income |
Mfs Blended and Mfs Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Blended and Mfs Strategic
The main advantage of trading using opposite Mfs Blended and Mfs Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Blended position performs unexpectedly, Mfs Strategic 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 Strategic will offset losses from the drop in Mfs Strategic's long position.| Mfs Blended vs. Elfun Diversified Fund | Mfs Blended vs. Aqr Diversified Arbitrage | Mfs Blended vs. Principal Lifetime Hybrid | Mfs Blended vs. Wilmington Diversified Income |
| Mfs Strategic vs. Putnam Global Health | Mfs Strategic vs. Prudential Health Sciences | Mfs Strategic vs. Baron Health Care | Mfs Strategic vs. Putnam Global Health |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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