Correlation Between Mfs Series and Massachusetts Investors
Can any of the company-specific risk be diversified away by investing in both Mfs Series and Massachusetts Investors 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 Series and Massachusetts Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Series Trust and Massachusetts Investors Trust, you can compare the effects of market volatilities on Mfs Series and Massachusetts Investors 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 Series with a short position of Massachusetts Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Series and Massachusetts Investors.
Diversification Opportunities for Mfs Series and Massachusetts Investors
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Massachusetts is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Series Trust and Massachusetts Investors Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massachusetts Investors and Mfs Series 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 Series Trust are associated (or correlated) with Massachusetts Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massachusetts Investors has no effect on the direction of Mfs Series i.e., Mfs Series and Massachusetts Investors go up and down completely randomly.
Pair Corralation between Mfs Series and Massachusetts Investors
Assuming the 90 days horizon Mfs Series Trust is expected to generate 0.94 times more return on investment than Massachusetts Investors. However, Mfs Series Trust is 1.06 times less risky than Massachusetts Investors. It trades about 0.21 of its potential returns per unit of risk. Massachusetts Investors Trust is currently generating about -0.06 per unit of risk. If you would invest 1,304 in Mfs Series Trust on December 29, 2024 and sell it today you would earn a total of 145.00 from holding Mfs Series Trust or generate 11.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mfs Series Trust vs. Massachusetts Investors Trust
Performance |
Timeline |
Mfs Series Trust |
Massachusetts Investors |
Mfs Series and Massachusetts Investors Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mfs Series and Massachusetts Investors
The main advantage of trading using opposite Mfs Series and Massachusetts Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Series position performs unexpectedly, Massachusetts Investors 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 Massachusetts Investors will offset losses from the drop in Massachusetts Investors' long position.Mfs Series vs. Ivy Natural Resources | Mfs Series vs. Franklin Natural Resources | Mfs Series vs. Transamerica Mlp Energy | Mfs Series vs. Global Resources Fund |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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