Correlation Between Mfs Lifetime and Federated Prudent
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Federated Prudent 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 Federated Prudent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Lifetime Retirement and Federated Prudent Bear, you can compare the effects of market volatilities on Mfs Lifetime and Federated Prudent 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 Federated Prudent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Federated Prudent.
Diversification Opportunities for Mfs Lifetime and Federated Prudent
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mfs and Federated is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime Retirement and Federated Prudent Bear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Prudent Bear 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 Retirement are associated (or correlated) with Federated Prudent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Prudent Bear has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Federated Prudent go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Federated Prudent
Assuming the 90 days horizon Mfs Lifetime Retirement is expected to generate 0.37 times more return on investment than Federated Prudent. However, Mfs Lifetime Retirement is 2.72 times less risky than Federated Prudent. It trades about 0.19 of its potential returns per unit of risk. Federated Prudent Bear is currently generating about -0.19 per unit of risk. If you would invest 1,225 in Mfs Lifetime Retirement on June 5, 2025 and sell it today you would earn a total of 32.00 from holding Mfs Lifetime Retirement or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Lifetime Retirement vs. Federated Prudent Bear
Performance |
| Timeline |
| Mfs Lifetime Retirement |
| Federated Prudent Bear |
Mfs Lifetime and Federated Prudent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Federated Prudent
The main advantage of trading using opposite Mfs Lifetime and Federated Prudent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Federated Prudent 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 Federated Prudent will offset losses from the drop in Federated Prudent's long position.| Mfs Lifetime vs. Mesirow Financial High | Mfs Lifetime vs. Vanguard Financials Index | Mfs Lifetime vs. Financial Industries Fund | Mfs Lifetime vs. Davis Financial Fund |
| Federated Prudent vs. Valic Company I | Federated Prudent vs. Small Cap Value Fund | Federated Prudent vs. Pace Smallmedium Value | Federated Prudent vs. Fpa Queens Road |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |