Correlation Between Western Asset and Mfs Technology
Can any of the company-specific risk be diversified away by investing in both Western Asset and Mfs Technology 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 Western Asset and Mfs Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Municipal and Mfs Technology Fund, you can compare the effects of market volatilities on Western Asset and Mfs Technology 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 Western Asset with a short position of Mfs Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Mfs Technology.
Diversification Opportunities for Western Asset and Mfs Technology
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Western and Mfs is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Municipal and Mfs Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Technology and Western Asset 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 Western Asset Municipal are associated (or correlated) with Mfs Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Technology has no effect on the direction of Western Asset i.e., Western Asset and Mfs Technology go up and down completely randomly.
Pair Corralation between Western Asset and Mfs Technology
Assuming the 90 days horizon Western Asset is expected to generate 9.8 times less return on investment than Mfs Technology. But when comparing it to its historical volatility, Western Asset Municipal is 7.17 times less risky than Mfs Technology. It trades about 0.08 of its potential returns per unit of risk. Mfs Technology Fund is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,712 in Mfs Technology Fund on September 8, 2025 and sell it today you would earn a total of 397.00 from holding Mfs Technology Fund or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Municipal vs. Mfs Technology Fund
Performance |
| Timeline |
| Western Asset Municipal |
| Mfs Technology |
Western Asset and Mfs Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Mfs Technology
The main advantage of trading using opposite Western Asset and Mfs Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Mfs Technology 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 Mfs Technology will offset losses from the drop in Mfs Technology's long position.| Western Asset vs. Federated Municipal High | Western Asset vs. Old Westbury Municipal | Western Asset vs. Equalize Community Development | Western Asset vs. Fidelity California Municipal |
| Mfs Technology vs. Putnam Global Health | Mfs Technology vs. Blackrock Health Sciences | Mfs Technology vs. Hartford Healthcare Hls | Mfs Technology vs. Health Care Ultrasector |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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