Correlation Between Mfs Lifetime and Oshaughnessy Market

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

By analyzing existing cross correlation between Mfs Lifetime 2030 and Oshaughnessy Market Leaders, you can compare the effects of market volatilities on Mfs Lifetime and Oshaughnessy Market 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 Oshaughnessy Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Oshaughnessy Market.

Diversification Opportunities for Mfs Lifetime and Oshaughnessy Market

0.58

Correlation Coefficient

Mfs Lifetime  Oshaughnessy Market

Very weak diversification

The 3 months correlation between Mfs and Oshaughnessy is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2030 and Oshaughnessy Market Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshaughnessy Market 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 2030 are associated (or correlated) with Oshaughnessy Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshaughnessy Market has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Oshaughnessy Market go up and down completely randomly.

Pair Corralation between Mfs Lifetime and Oshaughnessy Market

Assuming the 90 days horizon Mfs Lifetime is expected to generate 2.31 times less return on investment than Oshaughnessy Market. But when comparing it to its historical volatility, Mfs Lifetime 2030 is 2.77 times less risky than Oshaughnessy Market. It trades about 0.25 of its potential returns per unit of risk. Oshaughnessy Market Leaders is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,928  in Oshaughnessy Market Leaders on May 2, 2025 and sell it today you would earn a total of  207.00  from holding Oshaughnessy Market Leaders or generate 10.74% return on investment over 90 days.

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

Mfs Lifetime 2030  vs.  Oshaughnessy Market Leaders

Mfs Lifetime 2030

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Lifetime 2030 are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Mfs Lifetime is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Oshaughnessy Market

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oshaughnessy Market Leaders are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Oshaughnessy Market may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Mfs Lifetime and Oshaughnessy Market

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

The idea behind Mfs Lifetime 2030 and Oshaughnessy Market Leaders 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.