Correlation Between Putnman Retirement and Mfs Lifetime

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

By analyzing existing cross correlation between Putnman Retirement Ready and Mfs Lifetime Retirement, you can compare the effects of market volatilities on Putnman Retirement and Mfs Lifetime 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 Putnman Retirement with a short position of Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnman Retirement and Mfs Lifetime.

Diversification Opportunities for Putnman Retirement and Mfs Lifetime

0.99

Correlation Coefficient

Putnman Retirement  Mfs Lifetime

No risk reduction

The 3 months correlation between Putnman and Mfs is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Putnman Retirement Ready and Mfs Lifetime Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime Retirement and Putnman Retirement 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 Putnman Retirement Ready are associated (or correlated) with Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime Retirement has no effect on the direction of Putnman Retirement i.e., Putnman Retirement and Mfs Lifetime go up and down completely randomly.

Pair Corralation between Putnman Retirement and Mfs Lifetime

Assuming the 90 days horizon Putnman Retirement Ready is expected to generate 1.41 times more return on investment than Mfs Lifetime. However, Putnman Retirement is 1.41 times more volatile than Mfs Lifetime Retirement. It trades about 0.22 of its potential returns per unit of risk. Mfs Lifetime Retirement is currently generating about 0.2 per unit of risk. If you would invest  2,488  in Putnman Retirement Ready on May 5, 2025 and sell it today you would earn a total of  116.00  from holding Putnman Retirement Ready or generate 4.66% return on investment over 90 days.

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

Putnman Retirement Ready  vs.  Mfs Lifetime Retirement

Putnman Retirement Ready

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Putnman Retirement Ready are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Putnman Retirement is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with Putnman Retirement and Mfs Lifetime

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

The idea behind Putnman Retirement Ready and Mfs Lifetime Retirement 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.