Correlation Between Amg Frontier and Mfs International
Can any of the company-specific risk be diversified away by investing in both Amg Frontier and Mfs International 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 Amg Frontier and Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Frontier Small and Mfs International Growth, you can compare the effects of market volatilities on Amg Frontier and Mfs International 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 Amg Frontier with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Frontier and Mfs International.
Diversification Opportunities for Amg Frontier and Mfs International
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amg and Mfs is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Amg Frontier Small and Mfs International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International Growth and Amg Frontier 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 Amg Frontier Small are associated (or correlated) with Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International Growth has no effect on the direction of Amg Frontier i.e., Amg Frontier and Mfs International go up and down completely randomly.
Pair Corralation between Amg Frontier and Mfs International
Assuming the 90 days horizon Amg Frontier Small is expected to under-perform the Mfs International. In addition to that, Amg Frontier is 1.79 times more volatile than Mfs International Growth. It trades about -0.26 of its total potential returns per unit of risk. Mfs International Growth is currently generating about -0.31 per unit of volatility. If you would invest 5,202 in Mfs International Growth on October 10, 2024 and sell it today you would lose (433.00) from holding Mfs International Growth or give up 8.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Amg Frontier Small vs. Mfs International Growth
Performance |
Timeline |
Amg Frontier Small |
Mfs International Growth |
Amg Frontier and Mfs International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amg Frontier and Mfs International
The main advantage of trading using opposite Amg Frontier and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Frontier position performs unexpectedly, Mfs International 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 International will offset losses from the drop in Mfs International's long position.Amg Frontier vs. Fidelity Small Cap | Amg Frontier vs. Ab Small Cap | Amg Frontier vs. Ultrasmall Cap Profund Ultrasmall Cap | Amg Frontier vs. Small Cap Value Fund |
Mfs International vs. Fisher Large Cap | Mfs International vs. Qs Large Cap | Mfs International vs. Blackrock Large Cap | Mfs International vs. Ab Large Cap |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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