Correlation Between Calvert Large and Mfs Intrinsic

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

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

Diversification Opportunities for Calvert Large and Mfs Intrinsic

0.67

Correlation Coefficient

Calvert Large  Mfs Intrinsic

Poor diversification

The 3 months correlation between Calvert and Mfs is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap 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 Calvert Large 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 Calvert Large Cap 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 Calvert Large i.e., Calvert Large and Mfs Intrinsic go up and down completely randomly.

Pair Corralation between Calvert Large and Mfs Intrinsic

Assuming the 90 days horizon Calvert Large is expected to generate 3.82 times less return on investment than Mfs Intrinsic. But when comparing it to its historical volatility, Calvert Large Cap is 6.45 times less risky than Mfs Intrinsic. It trades about 0.26 of its potential returns per unit of risk. Mfs Intrinsic Value is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,195  in Mfs Intrinsic Value on May 21, 2025 and sell it today you would earn a total of  71.00  from holding Mfs Intrinsic Value or generate 5.94% return on investment over 90 days.

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

Calvert Large Cap  vs.  Mfs Intrinsic Value

Calvert Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Calvert Large 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

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Intrinsic Value are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Mfs Intrinsic is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calvert Large and Mfs Intrinsic

The main advantage of trading using opposite Calvert Large and Mfs Intrinsic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Large 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 Calvert Large Cap 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.