Correlation Between Mfs Lifetime and Performance Trust

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

Diversification Opportunities for Mfs Lifetime and Performance Trust

0.82

Correlation Coefficient

Mfs Lifetime  Performance Trust

Very poor diversification

The 3 months correlation between Mfs and Performance is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime Retirement and Performance Trust Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Trust Credit 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 Performance Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Trust Credit has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Performance Trust go up and down completely randomly.

Pair Corralation between Mfs Lifetime and Performance Trust

Assuming the 90 days horizon Mfs Lifetime Retirement is expected to generate 1.08 times more return on investment than Performance Trust. However, Mfs Lifetime is 1.08 times more volatile than Performance Trust Credit. It trades about 0.2 of its potential returns per unit of risk. Performance Trust Credit is currently generating about 0.13 per unit of risk. If you would invest  1,219  in Mfs Lifetime Retirement on May 18, 2025 and sell it today you would earn a total of  35.00  from holding Mfs Lifetime Retirement or generate 2.87% return on investment over 90 days.

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

Mfs Lifetime Retirement  vs.  Performance Trust Credit

Mfs Lifetime Retirement

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Lifetime Retirement are ranked lower than 15 (%) 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.

Performance Trust Credit

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Trust Credit are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Performance Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mfs Lifetime and Performance Trust

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

The idea behind Mfs Lifetime Retirement and Performance Trust Credit 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.