Correlation Between Highland Global and Mfs Lifetime

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

By analyzing existing cross correlation between Highland Global Allocation and Mfs Lifetime 2065, you can compare the effects of market volatilities on Highland Global 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 Highland Global with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Global and Mfs Lifetime.

Diversification Opportunities for Highland Global and Mfs Lifetime

0.48

Correlation Coefficient

Highland Global  Mfs Lifetime

Very weak diversification

The 3 months correlation between Highland and Mfs is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Highland Global Allocation and Mfs Lifetime 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2065 and Highland Global 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 Highland Global Allocation 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 2065 has no effect on the direction of Highland Global i.e., Highland Global and Mfs Lifetime go up and down completely randomly.

Pair Corralation between Highland Global and Mfs Lifetime

Given the investment horizon of 90 days Highland Global is expected to generate 4.06 times less return on investment than Mfs Lifetime. In addition to that, Highland Global is 1.93 times more volatile than Mfs Lifetime 2065. It trades about 0.03 of its total potential returns per unit of risk. Mfs Lifetime 2065 is currently generating about 0.21 per unit of volatility. If you would invest  1,006  in Mfs Lifetime 2065 on May 4, 2025 and sell it today you would earn a total of  78.00  from holding Mfs Lifetime 2065 or generate 7.75% return on investment over 90 days.

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

Highland Global Allocation  vs.  Mfs Lifetime 2065

Highland Global Allo

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Global Allocation are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong essential indicators, Highland Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Mfs Lifetime 2065

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Lifetime 2065 are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical indicators, Mfs Lifetime may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Highland Global and Mfs Lifetime

The main advantage of trading using opposite Highland Global and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Global 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 Highland Global Allocation and Mfs Lifetime 2065 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.