Correlation Between Mfs International and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Mfs International and Mfs Lifetime 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 International and Mfs Lifetime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs International Large and Mfs Lifetime 2065, you can compare the effects of market volatilities on Mfs International and Mfs Lifetime 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 International with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs International and Mfs Lifetime.
Diversification Opportunities for Mfs International and Mfs Lifetime
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mfs and Mfs is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Mfs International Large and Mfs Lifetime 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2065 and Mfs International 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 International Large are associated (or correlated) with Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime 2065 has no effect on the direction of Mfs International i.e., Mfs International and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Mfs International and Mfs Lifetime
Assuming the 90 days horizon Mfs International is expected to generate 1.01 times less return on investment than Mfs Lifetime. In addition to that, Mfs International is 1.28 times more volatile than Mfs Lifetime 2065. It trades about 0.13 of its total potential returns per unit of risk. Mfs Lifetime 2065 is currently generating about 0.16 per unit of volatility. If you would invest 1,059 in Mfs Lifetime 2065 on June 12, 2025 and sell it today you would earn a total of 58.00 from holding Mfs Lifetime 2065 or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs International Large vs. Mfs Lifetime 2065
Performance |
| Timeline |
| Mfs International Large |
| Mfs Lifetime 2065 |
Mfs International and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs International and Mfs Lifetime
The main advantage of trading using opposite Mfs International and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs International position performs unexpectedly, Mfs Lifetime 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 Lifetime will offset losses from the drop in Mfs Lifetime's long position.| Mfs International vs. Global Technology Portfolio | Mfs International vs. Science Technology Fund | Mfs International vs. Fidelity Advisor Technology | Mfs International vs. Icon Information Technology |
| Mfs Lifetime vs. Financial Industries Fund | Mfs Lifetime vs. Putnam Global Financials | Mfs Lifetime vs. Davis Financial Fund | Mfs Lifetime vs. 1919 Financial Services |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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