Correlation Between Balanced Fund and Mfs Technology
Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Mfs Technology 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 Balanced Fund and Mfs Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Retail and Mfs Technology Fund, you can compare the effects of market volatilities on Balanced Fund and Mfs Technology 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 Balanced Fund with a short position of Mfs Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Mfs Technology.
Diversification Opportunities for Balanced Fund and Mfs Technology
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Balanced and Mfs is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Retail and Mfs Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Technology and Balanced Fund 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 Balanced Fund Retail are associated (or correlated) with Mfs Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Technology has no effect on the direction of Balanced Fund i.e., Balanced Fund and Mfs Technology go up and down completely randomly.
Pair Corralation between Balanced Fund and Mfs Technology
Assuming the 90 days horizon Balanced Fund Retail is expected to generate 0.45 times more return on investment than Mfs Technology. However, Balanced Fund Retail is 2.24 times less risky than Mfs Technology. It trades about 0.22 of its potential returns per unit of risk. Mfs Technology Fund is currently generating about 0.04 per unit of risk. If you would invest 1,289 in Balanced Fund Retail on June 4, 2025 and sell it today you would earn a total of 48.00 from holding Balanced Fund Retail or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balanced Fund Retail vs. Mfs Technology Fund
Performance |
| Timeline |
| Balanced Fund Retail |
| Mfs Technology |
Balanced Fund and Mfs Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Mfs Technology
The main advantage of trading using opposite Balanced Fund and Mfs Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Mfs Technology 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 Technology will offset losses from the drop in Mfs Technology's long position.| Balanced Fund vs. All Asset Fund | Balanced Fund vs. Pimco All Asset | Balanced Fund vs. All Asset Fund | Balanced Fund vs. Pimco All Asset |
| Mfs Technology vs. Fidelity Advisor Gold | Mfs Technology vs. Invesco Gold Special | Mfs Technology vs. Oppenheimer Gold Special | Mfs Technology vs. Goldman Sachs Clean |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |