Correlation Between Mfs Technology and Cornerstone Strategic

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

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

Diversification Opportunities for Mfs Technology and Cornerstone Strategic

0.74

Correlation Coefficient

Mfs Technology  Cornerstone Strategic

Poor diversification

The 3 months correlation between Mfs and Cornerstone is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Technology Fund and Cornerstone Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornerstone Strategic and Mfs Technology 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 Technology Fund are associated (or correlated) with Cornerstone Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornerstone Strategic has no effect on the direction of Mfs Technology i.e., Mfs Technology and Cornerstone Strategic go up and down completely randomly.

Pair Corralation between Mfs Technology and Cornerstone Strategic

Assuming the 90 days horizon Mfs Technology Fund is expected to generate 1.73 times more return on investment than Cornerstone Strategic. However, Mfs Technology is 1.73 times more volatile than Cornerstone Strategic Value. It trades about 0.11 of its potential returns per unit of risk. Cornerstone Strategic Value is currently generating about 0.14 per unit of risk. If you would invest  4,712  in Mfs Technology Fund on September 7, 2025 and sell it today you would earn a total of  397.00  from holding Mfs Technology Fund or generate 8.43% return on investment over 90 days.

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

Mfs Technology Fund  vs.  Cornerstone Strategic Value

Mfs Technology

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Technology Fund are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Mfs Technology may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Cornerstone Strategic

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cornerstone Strategic Value are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy essential indicators, Cornerstone Strategic is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Mfs Technology and Cornerstone Strategic

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

The idea behind Mfs Technology Fund and Cornerstone Strategic Value 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.