Correlation Between Mfs Lifetime and Mfs Blended

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

By analyzing existing cross correlation between Mfs Lifetime 2060 and Mfs Blended Research, you can compare the effects of market volatilities on Mfs Lifetime and Mfs Blended 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 Lifetime with a short position of Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Mfs Blended.

Diversification Opportunities for Mfs Lifetime and Mfs Blended

0.98

Correlation Coefficient

Mfs Lifetime  Mfs Blended

Almost no diversification

The 3 months correlation between Mfs and Mfs is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2060 and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research and Mfs Lifetime 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 Lifetime 2060 are associated (or correlated) with Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Mfs Blended go up and down completely randomly.

Pair Corralation between Mfs Lifetime and Mfs Blended

Assuming the 90 days horizon Mfs Lifetime is expected to generate 1.33 times less return on investment than Mfs Blended. In addition to that, Mfs Lifetime is 1.02 times more volatile than Mfs Blended Research. It trades about 0.31 of its total potential returns per unit of risk. Mfs Blended Research is currently generating about 0.42 per unit of volatility. If you would invest  1,408  in Mfs Blended Research on April 25, 2025 and sell it today you would earn a total of  212.00  from holding Mfs Blended Research or generate 15.06% return on investment over 90 days.

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

Mfs Lifetime 2060  vs.  Mfs Blended Research

Mfs Lifetime 2060

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Lifetime 2060 are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mfs Lifetime may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Mfs Blended Research

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Blended Research are ranked lower than 33 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mfs Blended showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mfs Lifetime and Mfs Blended

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

The idea behind Mfs Lifetime 2060 and Mfs Blended Research 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.