Correlation Between Mfs Research and Astor Star

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

By analyzing existing cross correlation between Mfs Research International and Astor Star Fund, you can compare the effects of market volatilities on Mfs Research and Astor Star 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 Research with a short position of Astor Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Research and Astor Star.

Diversification Opportunities for Mfs Research and Astor Star

0.64

Correlation Coefficient

Mfs Research  Astor Star

Poor diversification

The 3 months correlation between Mfs and Astor is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Research International and Astor Star Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Star Fund and Mfs Research 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 Research International are associated (or correlated) with Astor Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Star Fund has no effect on the direction of Mfs Research i.e., Mfs Research and Astor Star go up and down completely randomly.

Pair Corralation between Mfs Research and Astor Star

Assuming the 90 days horizon Mfs Research is expected to generate 1.19 times less return on investment than Astor Star. In addition to that, Mfs Research is 1.69 times more volatile than Astor Star Fund. It trades about 0.1 of its total potential returns per unit of risk. Astor Star Fund is currently generating about 0.2 per unit of volatility. If you would invest  1,510  in Astor Star Fund on May 7, 2025 and sell it today you would earn a total of  77.00  from holding Astor Star Fund or generate 5.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Mfs Research International  vs.  Astor Star Fund

Mfs Research Interna

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Research International are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Mfs Research is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Astor Star Fund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Astor Star Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Astor Star 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 Research and Astor Star

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

The idea behind Mfs Research International and Astor Star Fund 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..