Correlation Between Global Gold and Mfs Intrinsic

Can any of the company-specific risk be diversified away by investing in both Global Gold and Mfs Intrinsic 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 Global Gold and Mfs Intrinsic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Gold Fund and Mfs Intrinsic Value, you can compare the effects of market volatilities on Global Gold and Mfs Intrinsic 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 Global Gold with a short position of Mfs Intrinsic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Mfs Intrinsic.

Diversification Opportunities for Global Gold and Mfs Intrinsic

0.39

Correlation Coefficient

Global Gold  Mfs Intrinsic

Weak diversification

The 3 months correlation between Global and Mfs is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund and Mfs Intrinsic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Intrinsic Value and Global Gold 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 Global Gold Fund are associated (or correlated) with Mfs Intrinsic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Intrinsic Value has no effect on the direction of Global Gold i.e., Global Gold and Mfs Intrinsic go up and down completely randomly.

Pair Corralation between Global Gold and Mfs Intrinsic

Assuming the 90 days horizon Global Gold Fund is expected to under-perform the Mfs Intrinsic. In addition to that, Global Gold is 2.75 times more volatile than Mfs Intrinsic Value. It trades about -0.07 of its total potential returns per unit of risk. Mfs Intrinsic Value is currently generating about -0.06 per unit of volatility. If you would invest  1,273  in Mfs Intrinsic Value on May 5, 2025 and sell it today you would lose (11.00) from holding Mfs Intrinsic Value or give up 0.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Global Gold Fund  vs.  Mfs Intrinsic Value

Global Gold Fund

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Global Gold Fund are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Global Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mfs Intrinsic Value

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Intrinsic Value are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Mfs Intrinsic may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Global Gold and Mfs Intrinsic

The main advantage of trading using opposite Global Gold and Mfs Intrinsic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold position performs unexpectedly, Mfs Intrinsic 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 Intrinsic will offset losses from the drop in Mfs Intrinsic's long position.

The idea behind Global Gold Fund and Mfs Intrinsic Value pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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..