Correlation Between Mfs Global and Global Advantage
Can any of the company-specific risk be diversified away by investing in both Mfs Global and Global Advantage 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 Global and Global Advantage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Global New and Global Advantage Portfolio, you can compare the effects of market volatilities on Mfs Global and Global Advantage 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 Global with a short position of Global Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Global and Global Advantage.
Diversification Opportunities for Mfs Global and Global Advantage
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mfs and Global is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Global New and Global Advantage Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Advantage Por and Mfs 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 Mfs Global New are associated (or correlated) with Global Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Advantage Por has no effect on the direction of Mfs Global i.e., Mfs Global and Global Advantage go up and down completely randomly.
Pair Corralation between Mfs Global and Global Advantage
Assuming the 90 days horizon Mfs Global New is expected to generate 0.4 times more return on investment than Global Advantage. However, Mfs Global New is 2.47 times less risky than Global Advantage. It trades about -0.1 of its potential returns per unit of risk. Global Advantage Portfolio is currently generating about -0.07 per unit of risk. If you would invest 2,459 in Mfs Global New on August 26, 2025 and sell it today you would lose (107.00) from holding Mfs Global New or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Mfs Global New vs. Global Advantage Portfolio
Performance |
| Timeline |
| Mfs Global New |
| Global Advantage Por |
Mfs Global and Global Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Global and Global Advantage
The main advantage of trading using opposite Mfs Global and Global Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Global position performs unexpectedly, Global Advantage 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 Global Advantage will offset losses from the drop in Global Advantage's long position.| Mfs Global vs. Enhanced Large Pany | Mfs Global vs. Knights Of Umbus | Mfs Global vs. Victory Rs Large | Mfs Global vs. Franklin Moderate Allocation |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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