Correlation Between Mfs Lifetime and Mfs Technology
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime 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 Mfs Lifetime and Mfs Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Lifetime 2065 and Mfs Technology Fund, you can compare the effects of market volatilities on Mfs Lifetime 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 Mfs Lifetime with a short position of Mfs Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Mfs Technology.
Diversification Opportunities for Mfs Lifetime and Mfs Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mfs and Mfs is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2065 and Mfs Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Technology and Mfs Lifetime 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 Lifetime 2065 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 Mfs Lifetime i.e., Mfs Lifetime and Mfs Technology go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Mfs Technology
Assuming the 90 days horizon Mfs Lifetime is expected to generate 12.08 times less return on investment than Mfs Technology. But when comparing it to its historical volatility, Mfs Lifetime 2065 is 2.12 times less risky than Mfs Technology. It trades about 0.02 of its potential returns per unit of risk. Mfs Technology Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,590 in Mfs Technology Fund on August 27, 2025 and sell it today you would earn a total of 352.00 from holding Mfs Technology Fund or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Lifetime 2065 vs. Mfs Technology Fund
Performance |
| Timeline |
| Mfs Lifetime 2065 |
| Mfs Technology |
Mfs Lifetime and Mfs Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Mfs Technology
The main advantage of trading using opposite Mfs Lifetime and Mfs Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime 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.| Mfs Lifetime vs. Alliancebernstein Global Highome | Mfs Lifetime vs. Easterly Rocmuni High | Mfs Lifetime vs. Aqr Risk Parity | Mfs Lifetime vs. Western Asset High |
| Mfs Technology vs. Eip Growth And | Mfs Technology vs. Western Asset Municipal | Mfs Technology vs. Vanguard High Yield Tax Exempt | Mfs Technology vs. Aam Select Income |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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