Correlation Between Van Eck and MFS Active

Can any of the company-specific risk be diversified away by investing in both Van Eck and MFS Active 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 Van Eck and MFS Active into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Van Eck and MFS Active Intermediate, you can compare the effects of market volatilities on Van Eck and MFS Active 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 Van Eck with a short position of MFS Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Van Eck and MFS Active.

Diversification Opportunities for Van Eck and MFS Active

-0.27

Correlation Coefficient

Van Eck  MFS Active

Very good diversification

The 3 months correlation between Van and MFS is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Van Eck and MFS Active Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Active Intermediate and Van Eck 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 Van Eck are associated (or correlated) with MFS Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Active Intermediate has no effect on the direction of Van Eck i.e., Van Eck and MFS Active go up and down completely randomly.

Pair Corralation between Van Eck and MFS Active

Considering the 90-day investment horizon Van Eck is expected to under-perform the MFS Active. In addition to that, Van Eck is 1.42 times more volatile than MFS Active Intermediate. It trades about -0.01 of its total potential returns per unit of risk. MFS Active Intermediate is currently generating about 0.06 per unit of volatility. If you would invest  2,417  in MFS Active Intermediate on May 2, 2025 and sell it today you would earn a total of  16.00  from holding MFS Active Intermediate or generate 0.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	55.74%
Values	Daily Returns

Van Eck  vs.  MFS Active Intermediate

Van Eck

Risk-Adjusted Performance

Very Weak

Over the last 90 days Van Eck has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, Van Eck is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

MFS Active Intermediate

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MFS Active Intermediate are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, MFS Active is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Van Eck and MFS Active

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

The idea behind Van Eck and MFS Active Intermediate 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.