Correlation Between EGSHARES BLUE and MFS Active

Can any of the company-specific risk be diversified away by investing in both EGSHARES BLUE and MFS Active 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 EGSHARES BLUE and MFS Active into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EGSHARES BLUE CHIP and MFS Active International, you can compare the effects of market volatilities on EGSHARES BLUE and MFS Active 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 EGSHARES BLUE with a short position of MFS Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGSHARES BLUE and MFS Active.

Diversification Opportunities for EGSHARES BLUE and MFS Active

0.32

Correlation Coefficient

EGSHARES BLUE  MFS Active

Weak diversification

The 3 months correlation between EGSHARES and MFS is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding EGSHARES BLUE CHIP and MFS Active International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Active International and EGSHARES BLUE 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 EGSHARES BLUE CHIP are associated (or correlated) with MFS Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Active International has no effect on the direction of EGSHARES BLUE i.e., EGSHARES BLUE and MFS Active go up and down completely randomly.

Pair Corralation between EGSHARES BLUE and MFS Active

Given the investment horizon of 90 days EGSHARES BLUE CHIP is expected to under-perform the MFS Active. In addition to that, EGSHARES BLUE is 1.98 times more volatile than MFS Active International. It trades about 0.0 of its total potential returns per unit of risk. MFS Active International is currently generating about 0.06 per unit of volatility. If you would invest  2,848  in MFS Active International on July 1, 2025 and sell it today you would earn a total of  73.00  from holding MFS Active International or generate 2.56% return on investment over 90 days.

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

EGSHARES BLUE CHIP  vs.  MFS Active International

EGSHARES BLUE CHIP

Risk-Adjusted Performance

Weakest

Over the last 90 days EGSHARES BLUE CHIP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, EGSHARES BLUE is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

MFS Active International

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in MFS Active International are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, MFS Active is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with EGSHARES BLUE and MFS Active

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

The idea behind EGSHARES BLUE CHIP and MFS Active International 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.