Correlation Between Mfs Value and At Mid

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

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

Diversification Opportunities for Mfs Value and At Mid

0.23

Correlation Coefficient

Mfs Value  At Mid

Modest diversification

The 3 months correlation between Mfs and AWMIX is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund and At Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on At Mid Cap and Mfs Value 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 Value Fund are associated (or correlated) with At Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of At Mid Cap has no effect on the direction of Mfs Value i.e., Mfs Value and At Mid go up and down completely randomly.

Pair Corralation between Mfs Value and At Mid

Assuming the 90 days horizon Mfs Value Fund is expected to generate 0.85 times more return on investment than At Mid. However, Mfs Value Fund is 1.18 times less risky than At Mid. It trades about 0.07 of its potential returns per unit of risk. At Mid Cap is currently generating about 0.01 per unit of risk. If you would invest  5,182  in Mfs Value Fund on July 3, 2025 and sell it today you would earn a total of  39.00  from holding Mfs Value Fund or generate 0.75% return on investment over 90 days.

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

Mfs Value Fund  vs.  At Mid Cap

Mfs Value Fund

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Value Fund are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Mfs Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

At Mid Cap

Risk-Adjusted Performance

Weakest

Over the last 90 days At Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, At Mid is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mfs Value and At Mid

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

The idea behind Mfs Value Fund and At 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.

Check out your portfolio center.

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 Anywhere module to track or share privately all of your investments from the convenience of any device.