Correlation Between Mfs Technology and Sa International
Can any of the company-specific risk be diversified away by investing in both Mfs Technology and Sa International 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 Sa International 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 Sa International Small, you can compare the effects of market volatilities on Mfs Technology and Sa International 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 Sa International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Technology and Sa International.
Diversification Opportunities for Mfs Technology and Sa International
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mfs and SAISX is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Technology Fund and Sa International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa International Small 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 Sa International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa International Small has no effect on the direction of Mfs Technology i.e., Mfs Technology and Sa International go up and down completely randomly.
Pair Corralation between Mfs Technology and Sa International
Assuming the 90 days horizon Mfs Technology Fund is expected to generate 1.7 times more return on investment than Sa International. However, Mfs Technology is 1.7 times more volatile than Sa International Small. It trades about 0.14 of its potential returns per unit of risk. Sa International Small is currently generating about 0.11 per unit of risk. If you would invest 4,549 in Mfs Technology Fund on August 31, 2025 and sell it today you would earn a total of 499.00 from holding Mfs Technology Fund or generate 10.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Technology Fund vs. Sa International Small
Performance |
| Timeline |
| Mfs Technology |
| Sa International Small |
Mfs Technology and Sa International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Technology and Sa International
The main advantage of trading using opposite Mfs Technology and Sa International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Technology position performs unexpectedly, Sa International 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 Sa International will offset losses from the drop in Sa International's long position.| Mfs Technology vs. Lebenthal Lisanti Small | Mfs Technology vs. William Blair Small Mid | Mfs Technology vs. Franklin Small Cap | Mfs Technology vs. Omni Small Cap Value |
| Sa International vs. Ultramid Cap Profund Ultramid Cap | Sa International vs. Small Cap Growth Profund | Sa International vs. Small Cap Value Profund | Sa International vs. Mid Cap Value Profund |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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