Correlation Between Mfs Value and Mfs Growth
Can any of the company-specific risk be diversified away by investing in both Mfs Value and Mfs Growth 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 Mfs Growth 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 Mfs Growth Fund, you can compare the effects of market volatilities on Mfs Value and Mfs Growth 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 Mfs Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and Mfs Growth.
Diversification Opportunities for Mfs Value and Mfs Growth
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mfs and Mfs is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund and Mfs Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Growth Fund 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 Mfs Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Growth Fund has no effect on the direction of Mfs Value i.e., Mfs Value and Mfs Growth go up and down completely randomly.
Pair Corralation between Mfs Value and Mfs Growth
Assuming the 90 days horizon Mfs Value Fund is expected to generate 0.6 times more return on investment than Mfs Growth. However, Mfs Value Fund is 1.68 times less risky than Mfs Growth. It trades about 0.02 of its potential returns per unit of risk. Mfs Growth Fund is currently generating about 0.01 per unit of risk. If you would invest 4,944 in Mfs Value Fund on December 5, 2024 and sell it today you would earn a total of 207.00 from holding Mfs Value Fund or generate 4.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Mfs Value Fund vs. Mfs Growth Fund
Performance |
Timeline |
Mfs Value Fund |
Mfs Growth Fund |
Mfs Value and Mfs Growth Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mfs Value and Mfs Growth
The main advantage of trading using opposite Mfs Value and Mfs Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value position performs unexpectedly, Mfs Growth 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 Growth will offset losses from the drop in Mfs Growth's long position.Mfs Value vs. Precious Metals And | Mfs Value vs. Gold And Precious | Mfs Value vs. First Eagle Gold | Mfs Value vs. Deutsche Gold Precious |
Mfs Growth vs. Mfs Value Fund | Mfs Growth vs. Mfs International Value | Mfs Growth vs. Mfs Mid Cap | Mfs Growth vs. Mfs International Diversification |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |