Correlation Between Mfs Lifetime and Dimensional Retirement
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Dimensional Retirement 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 Dimensional Retirement 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 Dimensional Retirement Income, you can compare the effects of market volatilities on Mfs Lifetime and Dimensional Retirement 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 Dimensional Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Dimensional Retirement.
Diversification Opportunities for Mfs Lifetime and Dimensional Retirement
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and Dimensional is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime Retirement and Dimensional Retirement Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional Retirement 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 Dimensional Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional Retirement has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Dimensional Retirement go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Dimensional Retirement
Assuming the 90 days horizon Mfs Lifetime Retirement is expected to generate 1.18 times more return on investment than Dimensional Retirement. However, Mfs Lifetime is 1.18 times more volatile than Dimensional Retirement Income. It trades about 0.07 of its potential returns per unit of risk. Dimensional Retirement Income is currently generating about 0.07 per unit of risk. If you would invest 1,209 in Mfs Lifetime Retirement on March 21, 2025 and sell it today you would earn a total of 23.00 from holding Mfs Lifetime Retirement or generate 1.9% 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. Dimensional Retirement Income
Performance |
| Timeline |
| Mfs Lifetime Retirement |
| Dimensional Retirement |
Mfs Lifetime and Dimensional Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Dimensional Retirement
The main advantage of trading using opposite Mfs Lifetime and Dimensional Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Dimensional Retirement 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 Dimensional Retirement will offset losses from the drop in Dimensional Retirement's long position.| Mfs Lifetime vs. Siit Small Cap | Mfs Lifetime vs. Pace Smallmedium Growth | Mfs Lifetime vs. Small Pany Growth | Mfs Lifetime vs. Champlain Small |
| Dimensional Retirement vs. Thrivent Large Cap | Dimensional Retirement vs. Guidemark Large Cap | Dimensional Retirement vs. Vest Large Cap | Dimensional Retirement vs. Large Cap Value |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |