Correlation Between Mfs Blended and Mfs Mid

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

By analyzing existing cross correlation between Mfs Blended Research and Mfs Mid Cap, you can compare the effects of market volatilities on Mfs Blended and Mfs Mid 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 Blended with a short position of Mfs Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Blended and Mfs Mid.

Diversification Opportunities for Mfs Blended and Mfs Mid

0.95

Correlation Coefficient

Mfs Blended  Mfs Mid

Almost no diversification

The 3 months correlation between Mfs and Mfs is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Blended Research and Mfs Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Mid Cap and Mfs Blended 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 Blended Research are associated (or correlated) with Mfs Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Mid Cap has no effect on the direction of Mfs Blended i.e., Mfs Blended and Mfs Mid go up and down completely randomly.

Pair Corralation between Mfs Blended and Mfs Mid

Assuming the 90 days horizon Mfs Blended Research is expected to generate 0.76 times more return on investment than Mfs Mid. However, Mfs Blended Research is 1.32 times less risky than Mfs Mid. It trades about 0.37 of its potential returns per unit of risk. Mfs Mid Cap is currently generating about 0.19 per unit of risk. If you would invest  1,386  in Mfs Blended Research on April 24, 2025 and sell it today you would earn a total of  228.00  from holding Mfs Blended Research or generate 16.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Mfs Blended Research  vs.  Mfs Mid Cap

Mfs Blended Research

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Blended Research are ranked lower than 29 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental drivers, Mfs Blended showed solid returns over the last few months and may actually be approaching a breakup point.

Mfs Mid Cap

Risk-Adjusted Performance

Good

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

Pair Trading with Mfs Blended and Mfs Mid

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

The idea behind Mfs Blended Research and Mfs Mid Cap 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.