Correlation Between Mfs Value and American Mutual
Can any of the company-specific risk be diversified away by investing in both Mfs Value and American Mutual 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 Value and American Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Value Fund and American Mutual Fund, you can compare the effects of market volatilities on Mfs Value and American Mutual 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 Value with a short position of American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and American Mutual.
Diversification Opportunities for Mfs Value and American Mutual
0.0 | 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 Value Fund and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual and Mfs Value 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 Value Fund are associated (or correlated) with American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual has no effect on the direction of Mfs Value i.e., Mfs Value and American Mutual go up and down completely randomly.
Pair Corralation between Mfs Value and American Mutual
If you would invest (100.00) in Mfs Value Fund on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Mfs Value Fund or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mfs Value Fund vs. American Mutual Fund
Performance |
| Timeline |
| Mfs Value Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Mutual |
Mfs Value and American Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Value and American Mutual
The main advantage of trading using opposite Mfs Value and American Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value position performs unexpectedly, American Mutual 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 Mutual will offset losses from the drop in American Mutual's long position.| Mfs Value vs. Chartwell Short Duration | Mfs Value vs. Sirios Longshort Fund | Mfs Value vs. Aqr Long Short Equity | Mfs Value vs. Touchstone Ultra Short |
| American Mutual vs. American Funds Fundamental | American Mutual vs. Amcap Fund Class | American Mutual vs. New Perspective Fund | American Mutual vs. American Balanced Fund |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| 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 | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |