Correlation Between Mfs Technology and Alger Smallcap
Can any of the company-specific risk be diversified away by investing in both Mfs Technology and Alger Smallcap 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 Alger Smallcap 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 Alger Smallcap Growth, you can compare the effects of market volatilities on Mfs Technology and Alger Smallcap 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 Alger Smallcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Technology and Alger Smallcap.
Diversification Opportunities for Mfs Technology and Alger Smallcap
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MFS and Alger is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Technology Fund and Alger Smallcap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Smallcap Growth 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 Alger Smallcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Smallcap Growth has no effect on the direction of Mfs Technology i.e., Mfs Technology and Alger Smallcap go up and down completely randomly.
Pair Corralation between Mfs Technology and Alger Smallcap
Assuming the 90 days horizon Mfs Technology is expected to generate 1.6 times less return on investment than Alger Smallcap. But when comparing it to its historical volatility, Mfs Technology Fund is 1.3 times less risky than Alger Smallcap. It trades about 0.15 of its potential returns per unit of risk. Alger Smallcap Growth is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 987.00 in Alger Smallcap Growth on May 27, 2025 and sell it today you would earn a total of 131.00 from holding Alger Smallcap Growth or generate 13.27% 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. Alger Smallcap Growth
Performance |
| Timeline |
| Mfs Technology |
| Alger Smallcap Growth |
Mfs Technology and Alger Smallcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Technology and Alger Smallcap
The main advantage of trading using opposite Mfs Technology and Alger Smallcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Technology position performs unexpectedly, Alger Smallcap 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 Alger Smallcap will offset losses from the drop in Alger Smallcap's long position.| Mfs Technology vs. Fkhemx | Mfs Technology vs. Balanced Fund Retail | Mfs Technology vs. Tax Managed Large Cap | Mfs Technology vs. Abr 7525 Volatility |
| Alger Smallcap vs. Sp Smallcap 600 | Alger Smallcap vs. Foundry Partners Fundamental | Alger Smallcap vs. Siit Small Cap | Alger Smallcap vs. Lebenthal Lisanti Small |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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