Correlation Between Dimensional International and MFS Active

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

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

Diversification Opportunities for Dimensional International and MFS Active

0.0

Correlation Coefficient

Dimensional International  MFS Active

Pay attention - limited upside

The 3 months correlation between Dimensional and MFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional International High and MFS Active Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Active Value and Dimensional International 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 Dimensional International High 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 Value has no effect on the direction of Dimensional International i.e., Dimensional International and MFS Active go up and down completely randomly.

Pair Corralation between Dimensional International and MFS Active

If you would invest  2,898  in Dimensional International High on May 26, 2025 and sell it today you would earn a total of  142.00  from holding Dimensional International High or generate 4.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Dimensional International High  vs.  MFS Active Value

Dimensional International

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Dimensional International High are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical indicators, Dimensional International is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

MFS Active Value

Risk-Adjusted Performance

Good

Over the last 90 days MFS Active Value has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, MFS Active is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Dimensional International and MFS Active

The main advantage of trading using opposite Dimensional International and MFS Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional International 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 Dimensional International High and MFS Active 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.