Correlation Between Mfs Value and Perkins Mid
Can any of the company-specific risk be diversified away by investing in both Mfs Value and Perkins Mid 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 Value and Perkins Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Value Fund and Perkins Mid Cap, you can compare the effects of market volatilities on Mfs Value and Perkins Mid 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 Value with a short position of Perkins Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and Perkins Mid.
Diversification Opportunities for Mfs Value and Perkins Mid
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and Perkins is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund and Perkins Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perkins Mid Cap and Mfs Value 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 Value Fund are associated (or correlated) with Perkins Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perkins Mid Cap has no effect on the direction of Mfs Value i.e., Mfs Value and Perkins Mid go up and down completely randomly.
Pair Corralation between Mfs Value and Perkins Mid
Assuming the 90 days horizon Mfs Value Fund is expected to under-perform the Perkins Mid. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mfs Value Fund is 1.2 times less risky than Perkins Mid. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Perkins Mid Cap is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,777 in Perkins Mid Cap on September 26, 2024 and sell it today you would lose (169.00) from holding Perkins Mid Cap or give up 9.51% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.44% |
Values | Daily Returns |
Mfs Value Fund vs. Perkins Mid Cap
Performance |
Timeline |
Mfs Value Fund |
Perkins Mid Cap |
Mfs Value and Perkins Mid Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mfs Value and Perkins Mid
The main advantage of trading using opposite Mfs Value and Perkins Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value position performs unexpectedly, Perkins Mid 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 Perkins Mid will offset losses from the drop in Perkins Mid's long position.Mfs Value vs. Mfs Prudent Investor | Mfs Value vs. Mfs Prudent Investor | Mfs Value vs. Mfs Prudent Investor | Mfs Value vs. Mfs Prudent Investor |
Perkins Mid vs. Janus Overseas Fund | Perkins Mid vs. Janus Forty Fund | Perkins Mid vs. Janus Enterprise Fund | Perkins Mid vs. American Funds Fundamental |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Transaction History View history of all your transactions and understand their impact on performance | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |