Correlation Between Mfs Lifetime and Deutsche Multi-asset
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Deutsche Multi-asset 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 Deutsche Multi-asset 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 Deutsche Multi Asset Moderate, you can compare the effects of market volatilities on Mfs Lifetime and Deutsche Multi-asset 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 Deutsche Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Deutsche Multi-asset.
Diversification Opportunities for Mfs Lifetime and Deutsche Multi-asset
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and Deutsche is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime Retirement and Deutsche Multi Asset Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Multi Asset 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 Deutsche Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Multi Asset has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Deutsche Multi-asset go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Deutsche Multi-asset
Assuming the 90 days horizon Mfs Lifetime is expected to generate 1.58 times less return on investment than Deutsche Multi-asset. But when comparing it to its historical volatility, Mfs Lifetime Retirement is 1.71 times less risky than Deutsche Multi-asset. It trades about 0.23 of its potential returns per unit of risk. Deutsche Multi Asset Moderate is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 730.00 in Deutsche Multi Asset Moderate on June 2, 2025 and sell it today you would earn a total of 38.00 from holding Deutsche Multi Asset Moderate or generate 5.21% 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 Retirement vs. Deutsche Multi Asset Moderate
Performance |
| Timeline |
| Mfs Lifetime Retirement |
| Deutsche Multi Asset |
Mfs Lifetime and Deutsche Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Deutsche Multi-asset
The main advantage of trading using opposite Mfs Lifetime and Deutsche Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Deutsche Multi-asset 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 Deutsche Multi-asset will offset losses from the drop in Deutsche Multi-asset's long position.| Mfs Lifetime vs. Mfs Prudent Investor | Mfs Lifetime vs. Mfs Prudent Investor | Mfs Lifetime vs. Mfs Prudent Investor | Mfs Lifetime vs. Mfs Prudent Investor |
| Deutsche Multi-asset vs. Jpmorgan Smartretirement 2035 | Deutsche Multi-asset vs. Sierra E Retirement | Deutsche Multi-asset vs. Calvert Moderate Allocation | Deutsche Multi-asset vs. Target Retirement 2040 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |