Correlation Between MFS Active and Listed Funds
Can any of the company-specific risk be diversified away by investing in both MFS Active and Listed Funds 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 Active and Listed Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Active Core and Listed Funds Trust, you can compare the effects of market volatilities on MFS Active and Listed Funds 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 Active with a short position of Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Active and Listed Funds.
Diversification Opportunities for MFS Active and Listed Funds
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MFS and Listed is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding MFS Active Core and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust and MFS Active 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 Active Core are associated (or correlated) with Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of MFS Active i.e., MFS Active and Listed Funds go up and down completely randomly.
Pair Corralation between MFS Active and Listed Funds
Given the investment horizon of 90 days MFS Active Core is expected to generate 1.94 times more return on investment than Listed Funds. However, MFS Active is 1.94 times more volatile than Listed Funds Trust. It trades about 0.24 of its potential returns per unit of risk. Listed Funds Trust is currently generating about 0.19 per unit of risk. If you would invest 2,479 in MFS Active Core on August 31, 2025 and sell it today you would earn a total of 67.00 from holding MFS Active Core or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Active Core vs. Listed Funds Trust
Performance |
| Timeline |
| MFS Active Core |
| Listed Funds Trust |
MFS Active and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Active and Listed Funds
The main advantage of trading using opposite MFS Active and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Active position performs unexpectedly, Listed Funds 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 Listed Funds will offset losses from the drop in Listed Funds' long position.| MFS Active vs. iShares Core Total | MFS Active vs. First Trust TCW | MFS Active vs. Fidelity Total Bond | MFS Active vs. SPDR DoubleLine Total |
| Listed Funds vs. Valued Advisers Trust | Listed Funds vs. Columbia Diversified Fixed | Listed Funds vs. Principal Exchange Traded Funds | Listed Funds vs. MFS Active Core |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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