Correlation Between Vanguard FTSE and MFS Active
Can any of the company-specific risk be diversified away by investing in both Vanguard FTSE 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 Vanguard FTSE and MFS Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard FTSE Developed and MFS Active International, you can compare the effects of market volatilities on Vanguard FTSE 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 Vanguard FTSE with a short position of MFS Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard FTSE and MFS Active.
Diversification Opportunities for Vanguard FTSE and MFS Active
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Vanguard and MFS is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard FTSE Developed and MFS Active International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Active International and Vanguard FTSE 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 Vanguard FTSE Developed 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 International has no effect on the direction of Vanguard FTSE i.e., Vanguard FTSE and MFS Active go up and down completely randomly.
Pair Corralation between Vanguard FTSE and MFS Active
Considering the 90-day investment horizon Vanguard FTSE Developed is expected to generate 1.01 times more return on investment than MFS Active. However, Vanguard FTSE is 1.01 times more volatile than MFS Active International. It trades about 0.2 of its potential returns per unit of risk. MFS Active International is currently generating about 0.18 per unit of risk. If you would invest 5,245 in Vanguard FTSE Developed on April 30, 2025 and sell it today you would earn a total of 471.00 from holding Vanguard FTSE Developed or generate 8.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Vanguard FTSE Developed vs. MFS Active International
Performance |
Timeline |
Vanguard FTSE Developed |
MFS Active International |
Vanguard FTSE and MFS Active Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vanguard FTSE and MFS Active
The main advantage of trading using opposite Vanguard FTSE and MFS Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard FTSE 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.Vanguard FTSE vs. Vanguard FTSE Emerging | Vanguard FTSE vs. Vanguard Small Cap Index | Vanguard FTSE vs. Vanguard Value Index | Vanguard FTSE vs. Vanguard Small Cap Value |
MFS Active vs. Strategy Shares | MFS Active vs. Freedom Day Dividend | MFS Active vs. Davis Select International | MFS Active vs. iShares MSCI China |
Check out your portfolio center.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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |