Correlation Between Mfs Lifetime and Investment Managers

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

By analyzing existing cross correlation between Mfs Lifetime Retirement and Investment Managers Series, you can compare the effects of market volatilities on Mfs Lifetime and Investment Managers 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 Investment Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Investment Managers.

Diversification Opportunities for Mfs Lifetime and Investment Managers

0.29

Correlation Coefficient

Mfs Lifetime  Investment Managers

Modest diversification

The 3 months correlation between Mfs and Investment is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime Retirement and Investment Managers Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Managers 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 Retirement are associated (or correlated) with Investment Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Managers has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Investment Managers go up and down completely randomly.

Pair Corralation between Mfs Lifetime and Investment Managers

Assuming the 90 days horizon Mfs Lifetime is expected to generate 30.23 times less return on investment than Investment Managers. But when comparing it to its historical volatility, Mfs Lifetime Retirement is 10.59 times less risky than Investment Managers. It trades about 0.04 of its potential returns per unit of risk. Investment Managers Series is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,773  in Investment Managers Series on September 12, 2025 and sell it today you would earn a total of  295.00  from holding Investment Managers Series or generate 16.64% return on investment over 90 days.

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

Mfs Lifetime Retirement  vs.  Investment Managers Series

Mfs Lifetime Retirement

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Lifetime Retirement are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Mfs Lifetime is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Investment Managers

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Investment Managers Series are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Investment Managers showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mfs Lifetime and Investment Managers

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

The idea behind Mfs Lifetime Retirement and Investment Managers Series 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.