Correlation Between Science Technology and Mfs Blended

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

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

Diversification Opportunities for Science Technology and Mfs Blended

0.96

Correlation Coefficient

Science Technology  Mfs Blended

Almost no diversification

The 3 months correlation between Science and Mfs is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Science Technology Fund and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research and Science 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 Science Technology Fund are associated (or correlated) with Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of Science Technology i.e., Science Technology and Mfs Blended go up and down completely randomly.

Pair Corralation between Science Technology and Mfs Blended

Assuming the 90 days horizon Science Technology is expected to generate 1.02 times less return on investment than Mfs Blended. In addition to that, Science Technology is 1.27 times more volatile than Mfs Blended Research. It trades about 0.12 of its total potential returns per unit of risk. Mfs Blended Research is currently generating about 0.16 per unit of volatility. If you would invest  1,586  in Mfs Blended Research on July 14, 2025 and sell it today you would earn a total of  133.00  from holding Mfs Blended Research or generate 8.39% return on investment over 90 days.

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

Science Technology Fund  vs.  Mfs Blended Research

Science Technology

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Science Technology Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Science Technology may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Mfs Blended Research

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Blended Research are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental drivers, Mfs Blended may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Science Technology and Mfs Blended

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

The idea behind Science Technology Fund and Mfs Blended Research 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.