Correlation Between Mfs Technology and Dunham Us
Can any of the company-specific risk be diversified away by investing in both Mfs Technology and Dunham Us 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 Technology and Dunham Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Technology Fund and Dunham Enhanced Market, you can compare the effects of market volatilities on Mfs Technology and Dunham Us 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 Technology with a short position of Dunham Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Technology and Dunham Us.
Diversification Opportunities for Mfs Technology and Dunham Us
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and Dunham is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Technology Fund and Dunham Enhanced Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Enhanced Market and Mfs Technology 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 Technology Fund are associated (or correlated) with Dunham Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Enhanced Market has no effect on the direction of Mfs Technology i.e., Mfs Technology and Dunham Us go up and down completely randomly.
Pair Corralation between Mfs Technology and Dunham Us
Assuming the 90 days horizon Mfs Technology is expected to generate 1.56 times less return on investment than Dunham Us. In addition to that, Mfs Technology is 1.39 times more volatile than Dunham Enhanced Market. It trades about 0.07 of its total potential returns per unit of risk. Dunham Enhanced Market is currently generating about 0.15 per unit of volatility. If you would invest 1,511 in Dunham Enhanced Market on June 9, 2025 and sell it today you would earn a total of 63.00 from holding Dunham Enhanced Market or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Technology Fund vs. Dunham Enhanced Market
Performance |
| Timeline |
| Mfs Technology |
| Dunham Enhanced Market |
Mfs Technology and Dunham Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Technology and Dunham Us
The main advantage of trading using opposite Mfs Technology and Dunham Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Technology position performs unexpectedly, Dunham Us 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 Dunham Us will offset losses from the drop in Dunham Us' long position.| Mfs Technology vs. Flkypx | Mfs Technology vs. Abs Insights Emerging | Mfs Technology vs. Fbanjx | Mfs Technology vs. Iaadx |
| Dunham Us vs. Dunham Appreciation Income | Dunham Us vs. Dunham Dynamic Macro | Dunham Us vs. Dunham Porategovernment Bond | Dunham Us vs. Dunham Small Cap |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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