Correlation Between Mfs Blended and American Funds

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Can any of the company-specific risk be diversified away by investing in both Mfs Blended and American Funds 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 Blended and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Blended Research and American Funds Global, you can compare the effects of market volatilities on Mfs Blended and American Funds 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 Blended with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Blended and American Funds.

Diversification Opportunities for Mfs Blended and American Funds

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Mfs and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MFS BLENDED RESEARCH and AMERICAN FUNDS GLOBAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Global and Mfs Blended 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 Blended Research are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Global has no effect on the direction of Mfs Blended i.e., Mfs Blended and American Funds go up and down completely randomly.

Pair Corralation between Mfs Blended and American Funds

If you would invest  2,139  in American Funds Global on December 29, 2023 and sell it today you would earn a total of  63.00  from holding American Funds Global or generate 2.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

MFS BLENDED RESEARCH  vs.  AMERICAN FUNDS GLOBAL

 Performance 
       Timeline  
Mfs Blended Research 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Mfs Blended Research has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Mfs Blended is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
American Funds Global 

Risk-Adjusted Performance

14 of 100

 
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Good
Compared to the overall equity markets, risk-adjusted returns on investments in American Funds Global are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, American Funds may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Mfs Blended and American Funds Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mfs Blended and American Funds

The main advantage of trading using opposite Mfs Blended and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Blended position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.
The idea behind Mfs Blended Research and American Funds Global 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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