Correlation Analysis Between MFS Diversified and Franklin Income

This module allows you to analyze existing cross correlation between MFS Diversified Income Fund Cla and Franklin Income Fund Class C. You can compare the effects of market volatilities on MFS Diversified and Franklin Income 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 Diversified with a short position of Franklin Income. See also your portfolio center. Please also check ongoing floating volatility patterns of MFS Diversified and Franklin Income.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

MFS Diversified Income  
77

Risk-Adjusted Fund Performance

Compared to the overall equity markets, risk-adjusted returns on investments in MFS Diversified Income Fund Cla are ranked lower than 7 (%) of all funds and portfolios of funds over the last 30 days. Inspite fairly strong basic indicators, MFS Diversified is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
Franklin Income Fund  
44

Risk-Adjusted Fund Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Income Fund Class C are ranked lower than 4 (%) of all funds and portfolios of funds over the last 30 days. Inspite fairly strong basic indicators, Franklin Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

MFS Diversified and Franklin Income Volatility Contrast

 Predicted Return Density 
      Returns 

MFS Diversified Income Fund Cl  vs.  Franklin Income Fund Class C

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, MFS Diversified Income Fund Cla is expected to generate 0.71 times more return on investment than Franklin Income. However, MFS Diversified Income Fund Cla is 1.41 times less risky than Franklin Income. It trades about 0.11 of its potential returns per unit of risk. Franklin Income Fund Class C is currently generating about 0.06 per unit of risk. If you would invest  1,279  in MFS Diversified Income Fund Cla on October 12, 2019 and sell it today you would earn a total of  27.00  from holding MFS Diversified Income Fund Cla or generate 2.11% return on investment over 30 days.

Pair Corralation between MFS Diversified and Franklin Income

0.76
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for MFS Diversified and Franklin Income

MFS Diversified Income Fund Cl diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding MFS Diversified Income Fund Cl and Franklin Income Fund Class C in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Franklin Income Fund and MFS Diversified 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 Diversified Income Fund Cla are associated (or correlated) with Franklin Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Income Fund has no effect on the direction of MFS Diversified i.e. MFS Diversified and Franklin Income go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.


 
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