Correlation Between Mfs Lifetime and Morningstar Growth

Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Morningstar Growth 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 Morningstar Growth 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 Morningstar Growth Etf, you can compare the effects of market volatilities on Mfs Lifetime and Morningstar Growth 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 Morningstar Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Morningstar Growth.

Diversification Opportunities for Mfs Lifetime and Morningstar Growth

0.96

Correlation Coefficient

Mfs Lifetime  Morningstar Growth

Almost no diversification

The 3 months correlation between Mfs and Morningstar is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2060 and Morningstar Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morningstar Growth Etf 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 Morningstar Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morningstar Growth Etf has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Morningstar Growth go up and down completely randomly.

Pair Corralation between Mfs Lifetime and Morningstar Growth

Assuming the 90 days horizon Mfs Lifetime is expected to generate 1.37 times less return on investment than Morningstar Growth. In addition to that, Mfs Lifetime is 1.06 times more volatile than Morningstar Growth Etf. It trades about 0.16 of its total potential returns per unit of risk. Morningstar Growth Etf is currently generating about 0.23 per unit of volatility. If you would invest  1,239  in Morningstar Growth Etf on May 8, 2025 and sell it today you would earn a total of  105.00  from holding Morningstar Growth Etf or generate 8.47% 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.  Morningstar Growth Etf

Mfs Lifetime 2060

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Lifetime 2060 are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mfs Lifetime is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Morningstar Growth Etf

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Morningstar Growth Etf are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Morningstar Growth may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Mfs Lifetime and Morningstar Growth

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

The idea behind Mfs Lifetime 2060 and Morningstar Growth Etf 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..