| LFTGX Fund | | | USD 10.31 0.01 0.1% |
The current 90-days correlation between Mfs Lifetime 2065 and Transamerica Asset Allocation is 0.19 (i.e., Average diversification). The correlation of Mfs Lifetime is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
Mfs Lifetime Correlation With Market
Very weak diversification
The correlation between Mfs Lifetime 2065 and DJI is 0.53 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2065 and DJI in the same portfolio, assuming nothing else is changed.
Check out
Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Mfs Lifetime 2065. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as
signals in price.