Correlation Between MFS Active and Series Portfolios

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

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

Diversification Opportunities for MFS Active and Series Portfolios

0.94

Correlation Coefficient

MFS Active  Series Portfolios

Almost no diversification

The 3 months correlation between MFS and Series is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding MFS Active Core and Series Portfolios Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Series Portfolios Trust and MFS Active 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 Active Core are associated (or correlated) with Series Portfolios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Series Portfolios Trust has no effect on the direction of MFS Active i.e., MFS Active and Series Portfolios go up and down completely randomly.

Pair Corralation between MFS Active and Series Portfolios

Given the investment horizon of 90 days MFS Active is expected to generate 2.39 times less return on investment than Series Portfolios. In addition to that, MFS Active is 1.54 times more volatile than Series Portfolios Trust. It trades about 0.14 of its total potential returns per unit of risk. Series Portfolios Trust is currently generating about 0.52 per unit of volatility. If you would invest  4,779  in Series Portfolios Trust on May 25, 2025 and sell it today you would earn a total of  268.00  from holding Series Portfolios Trust or generate 5.61% return on investment over 90 days.

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

MFS Active Core  vs.  Series Portfolios Trust

MFS Active Core

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MFS Active Core are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, MFS Active is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Series Portfolios Trust

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in Series Portfolios Trust are ranked lower than 40 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, Series Portfolios is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with MFS Active and Series Portfolios

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

The idea behind MFS Active Core and Series Portfolios Trust 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.