Correlation Between Mfs Lifetime and Mfs Emerging
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime 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 Mfs Lifetime and Mfs Emerging 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 Emerging Markets, you can compare the effects of market volatilities on Mfs Lifetime 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 Mfs Lifetime with a short position of Mfs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Mfs Emerging.
Diversification Opportunities for Mfs Lifetime and Mfs Emerging
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and Mfs is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2065 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 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 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 Mfs Lifetime i.e., Mfs Lifetime and Mfs Emerging go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Mfs Emerging
Assuming the 90 days horizon Mfs Lifetime 2065 is expected to generate 2.79 times more return on investment than Mfs Emerging. However, Mfs Lifetime is 2.79 times more volatile than Mfs Emerging Markets. It trades about 0.2 of its potential returns per unit of risk. Mfs Emerging Markets is currently generating about 0.39 per unit of risk. If you would invest 1,045 in Mfs Lifetime 2065 on May 26, 2025 and sell it today you would earn a total of 74.00 from holding Mfs Lifetime 2065 or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Lifetime 2065 vs. Mfs Emerging Markets
Performance |
| Timeline |
| Mfs Lifetime 2065 |
| Mfs Emerging Markets |
Mfs Lifetime and Mfs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Mfs Emerging
The main advantage of trading using opposite Mfs Lifetime and Mfs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime 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.| Mfs Lifetime vs. Rmb Mendon Financial | Mfs Lifetime vs. Gabelli Global Financial | Mfs Lifetime vs. 1919 Financial Services | Mfs Lifetime vs. Blackrock Financial Institutions |
| Mfs Emerging vs. Global Real Estate | Mfs Emerging vs. Vanguard Reit Index | Mfs Emerging vs. Nuveen Real Estate | Mfs Emerging vs. Davis Real Estate |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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