Correlation Between Mfs Lifetime and Aggressive Growth
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Aggressive Growth 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 Aggressive Growth 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 Aggressive Growth Allocation, you can compare the effects of market volatilities on Mfs Lifetime and Aggressive Growth 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 Aggressive Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Aggressive Growth.
Diversification Opportunities for Mfs Lifetime and Aggressive Growth
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Mfs and Aggressive is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime Retirement and Aggressive Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Growth 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 Aggressive Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Growth has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Aggressive Growth go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Aggressive Growth
Assuming the 90 days horizon Mfs Lifetime is expected to generate 3.99 times less return on investment than Aggressive Growth. But when comparing it to its historical volatility, Mfs Lifetime Retirement is 1.98 times less risky than Aggressive Growth. It trades about 0.21 of its potential returns per unit of risk. Aggressive Growth Allocation is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 1,180 in Aggressive Growth Allocation on April 19, 2025 and sell it today you would earn a total of 48.00 from holding Aggressive Growth Allocation or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mfs Lifetime Retirement vs. Aggressive Growth Allocation
Performance |
| Timeline |
| Mfs Lifetime Retirement |
| Aggressive Growth |
Mfs Lifetime and Aggressive Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Aggressive Growth
The main advantage of trading using opposite Mfs Lifetime and Aggressive Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Aggressive Growth 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 Aggressive Growth will offset losses from the drop in Aggressive Growth's long position.| Mfs Lifetime vs. Virtus Convertible | Mfs Lifetime vs. Fidelity Sai Convertible | Mfs Lifetime vs. Putnam Convertible Securities | Mfs Lifetime vs. Calamos Dynamic Convertible |
| Aggressive Growth vs. Auer Growth Fund | Aggressive Growth vs. Morgan Stanley Pathway | Aggressive Growth vs. T Rowe Price | Aggressive Growth vs. The Tocqueville Fund |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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