Correlation Between Cornerstone Strategic and Mfs Lifetime

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

By analyzing existing cross correlation between Cornerstone Strategic Value and Mfs Lifetime 2030, you can compare the effects of market volatilities on Cornerstone Strategic and Mfs Lifetime 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 Cornerstone Strategic with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Strategic and Mfs Lifetime.

Diversification Opportunities for Cornerstone Strategic and Mfs Lifetime

0.83

Correlation Coefficient

Cornerstone Strategic  Mfs Lifetime

Very poor diversification

The 3 months correlation between Cornerstone and Mfs is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cornerstone Strategic Value and Mfs Lifetime 2030 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2030 and Cornerstone Strategic 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 Cornerstone Strategic Value are associated (or correlated) with Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime 2030 has no effect on the direction of Cornerstone Strategic i.e., Cornerstone Strategic and Mfs Lifetime go up and down completely randomly.

Pair Corralation between Cornerstone Strategic and Mfs Lifetime

Considering the 90-day investment horizon Cornerstone Strategic Value is expected to generate 3.32 times more return on investment than Mfs Lifetime. However, Cornerstone Strategic is 3.32 times more volatile than Mfs Lifetime 2030. It trades about 0.07 of its potential returns per unit of risk. Mfs Lifetime 2030 is currently generating about 0.09 per unit of risk. If you would invest  667.00  in Cornerstone Strategic Value on July 29, 2025 and sell it today you would earn a total of  154.00  from holding Cornerstone Strategic Value or generate 23.09% return on investment over 90 days.

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

Cornerstone Strategic Value  vs.  Mfs Lifetime 2030

Cornerstone Strategic

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cornerstone Strategic Value are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy essential indicators, Cornerstone Strategic is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Mfs Lifetime 2030

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Lifetime 2030 are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Mfs Lifetime is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cornerstone Strategic and Mfs Lifetime

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

The idea behind Cornerstone Strategic Value and Mfs Lifetime 2030 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..