Correlation Between Mfs Value and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both Mfs Value and Federated Strategic 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 Federated Strategic 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 Federated Strategic Value, you can compare the effects of market volatilities on Mfs Value and Federated Strategic 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 Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and Federated Strategic.
Diversification Opportunities for Mfs Value and Federated Strategic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mfs and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund and Federated Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic Value 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 Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic Value has no effect on the direction of Mfs Value i.e., Mfs Value and Federated Strategic go up and down completely randomly.
Pair Corralation between Mfs Value and Federated Strategic
If you would invest (100.00) in Mfs Value Fund on January 20, 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. Federated Strategic Value
Performance |
| Timeline |
| Mfs Value Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Federated Strategic Value |
Mfs Value and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Value and Federated Strategic
The main advantage of trading using opposite Mfs Value and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value position performs unexpectedly, Federated Strategic 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 Federated Strategic will offset losses from the drop in Federated Strategic's long position.| Mfs Value vs. Old Westbury Large | Mfs Value vs. Alternative Asset Allocation | Mfs Value vs. Qs Global Equity | Mfs Value vs. Artisan Thematic Fund |
| Federated Strategic vs. Federated Emerging Market | Federated Strategic vs. Federated Mdt All | Federated Strategic vs. Federated Mdt Balanced | Federated Strategic vs. Federated Global Allocation |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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