Correlation Between Leuthold Global and Mfs Emerging
Can any of the company-specific risk be diversified away by investing in both Leuthold Global and Mfs Emerging 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 Leuthold Global and Mfs Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leuthold Global Fund and Mfs Emerging Markets, you can compare the effects of market volatilities on Leuthold Global and Mfs Emerging 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 Leuthold Global with a short position of Mfs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leuthold Global and Mfs Emerging.
Diversification Opportunities for Leuthold Global and Mfs Emerging
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Leuthold and Mfs is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Leuthold Global Fund and Mfs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Emerging Markets and Leuthold Global 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 Leuthold Global Fund are associated (or correlated) with Mfs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Emerging Markets has no effect on the direction of Leuthold Global i.e., Leuthold Global and Mfs Emerging go up and down completely randomly.
Pair Corralation between Leuthold Global and Mfs Emerging
Assuming the 90 days horizon Leuthold Global Fund is expected to generate 2.26 times more return on investment than Mfs Emerging. However, Leuthold Global is 2.26 times more volatile than Mfs Emerging Markets. It trades about 0.18 of its potential returns per unit of risk. Mfs Emerging Markets is currently generating about 0.31 per unit of risk. If you would invest 930.00 in Leuthold Global Fund on June 5, 2025 and sell it today you would earn a total of 44.00 from holding Leuthold Global Fund or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leuthold Global Fund vs. Mfs Emerging Markets
Performance |
| Timeline |
| Leuthold Global |
| Mfs Emerging Markets |
Leuthold Global and Mfs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leuthold Global and Mfs Emerging
The main advantage of trading using opposite Leuthold Global and Mfs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leuthold Global position performs unexpectedly, Mfs Emerging 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 Emerging will offset losses from the drop in Mfs Emerging's long position.| Leuthold Global vs. Goldman Sachs Small | Leuthold Global vs. Touchstone Small Cap | Leuthold Global vs. Pace Smallmedium Value | Leuthold Global vs. Nuveen Nwq Smallmid Cap |
| Mfs Emerging vs. Aquila Three Peaks | Mfs Emerging vs. Ironclad Managed Risk | Mfs Emerging vs. Metropolitan West High | Mfs Emerging vs. Siit High Yield |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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