Correlation Between Mfs Global and Mfs Core
Can any of the company-specific risk be diversified away by investing in both Mfs Global and Mfs Core 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 Global and Mfs Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Global Real and Mfs E Equity, you can compare the effects of market volatilities on Mfs Global and Mfs Core 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 Global with a short position of Mfs Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Global and Mfs Core.
Diversification Opportunities for Mfs Global and Mfs Core
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mfs and Mfs is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Global Real and Mfs E Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs E Equity and Mfs 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 Mfs Global Real are associated (or correlated) with Mfs Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs E Equity has no effect on the direction of Mfs Global i.e., Mfs Global and Mfs Core go up and down completely randomly.
Pair Corralation between Mfs Global and Mfs Core
Assuming the 90 days horizon Mfs Global is expected to generate 3.79 times less return on investment than Mfs Core. In addition to that, Mfs Global is 1.12 times more volatile than Mfs E Equity. It trades about 0.04 of its total potential returns per unit of risk. Mfs E Equity is currently generating about 0.15 per unit of volatility. If you would invest 5,089 in Mfs E Equity on May 14, 2025 and sell it today you would earn a total of 319.00 from holding Mfs E Equity or generate 6.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
Mfs Global Real vs. Mfs E Equity
Performance |
Timeline |
Mfs Global Real |
Mfs E Equity |
Mfs Global and Mfs Core Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mfs Global and Mfs Core
The main advantage of trading using opposite Mfs Global and Mfs Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Global position performs unexpectedly, Mfs Core 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 Core will offset losses from the drop in Mfs Core's long position.Mfs Global vs. Pace Municipal Fixed | Mfs Global vs. Gamco Global Telecommunications | Mfs Global vs. Strategic Advisers Tax Sensitive | Mfs Global vs. Vanguard Telecommunication Services |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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