Correlation Between Fidelity Managed and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Fidelity Managed and Mfs Lifetime 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 Fidelity Managed and Mfs Lifetime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Managed Retirement and Mfs Lifetime Retirement, you can compare the effects of market volatilities on Fidelity Managed and Mfs Lifetime 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 Fidelity Managed with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Managed and Mfs Lifetime.
Diversification Opportunities for Fidelity Managed and Mfs Lifetime
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Fidelity and Mfs is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Managed Retirement and Mfs Lifetime Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime Retirement and Fidelity 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 Fidelity Managed Retirement are associated (or correlated) with Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime Retirement has no effect on the direction of Fidelity Managed i.e., Fidelity Managed and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Fidelity Managed and Mfs Lifetime
Assuming the 90 days horizon Fidelity Managed Retirement is expected to generate 1.2 times more return on investment than Mfs Lifetime. However, Fidelity Managed is 1.2 times more volatile than Mfs Lifetime Retirement. It trades about 0.23 of its potential returns per unit of risk. Mfs Lifetime Retirement is currently generating about 0.22 per unit of risk. If you would invest 5,483 in Fidelity Managed Retirement on June 6, 2025 and sell it today you would earn a total of 211.00 from holding Fidelity Managed Retirement or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Fidelity Managed Retirement vs. Mfs Lifetime Retirement
Performance |
| Timeline |
| Fidelity Managed Ret |
| Mfs Lifetime Retirement |
Fidelity Managed and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Managed and Mfs Lifetime
The main advantage of trading using opposite Fidelity Managed and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Managed position performs unexpectedly, Mfs Lifetime 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 Lifetime will offset losses from the drop in Mfs Lifetime's long position.| Fidelity Managed vs. Live Oak Health | Fidelity Managed vs. Delaware Healthcare Fund | Fidelity Managed vs. Invesco Global Health | Fidelity Managed vs. The Gabelli Healthcare |
| Mfs Lifetime vs. Mesirow Financial High | Mfs Lifetime vs. Vanguard Financials Index | Mfs Lifetime vs. Financial Industries Fund | Mfs Lifetime vs. Davis Financial Fund |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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