Correlation Between Mfs Lifetime and Voya Index
Can any of the company-specific risk be diversified away by investing in both Mfs Lifetime and Voya Index 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 Lifetime and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Lifetime 2035 and Voya Index Solution, you can compare the effects of market volatilities on Mfs Lifetime and Voya Index 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 Lifetime with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Lifetime and Voya Index.
Diversification Opportunities for Mfs Lifetime and Voya Index
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Mfs and Voya is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Lifetime 2035 and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution and Mfs Lifetime 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 Lifetime 2035 are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Solution has no effect on the direction of Mfs Lifetime i.e., Mfs Lifetime and Voya Index go up and down completely randomly.
Pair Corralation between Mfs Lifetime and Voya Index
Assuming the 90 days horizon Mfs Lifetime 2035 is expected to generate 0.86 times more return on investment than Voya Index. However, Mfs Lifetime 2035 is 1.17 times less risky than Voya Index. It trades about 0.1 of its potential returns per unit of risk. Voya Index Solution is currently generating about 0.08 per unit of risk. If you would invest 1,653 in Mfs Lifetime 2035 on January 24, 2024 and sell it today you would earn a total of 50.00 from holding Mfs Lifetime 2035 or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Lifetime 2035 vs. Voya Index Solution
Performance |
| Timeline |
| Mfs Lifetime 2035 |
| Voya Index Solution |
Mfs Lifetime and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Lifetime and Voya Index
The main advantage of trading using opposite Mfs Lifetime and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Lifetime position performs unexpectedly, Voya Index 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 Voya Index will offset losses from the drop in Voya Index's long position.| Mfs Lifetime vs. Mfs Prudent Investor | Mfs Lifetime vs. Mfs Prudent Investor | Mfs Lifetime vs. Mfs Prudent Investor | Mfs Lifetime vs. Mfs Prudent Investor |
| Voya Index vs. Voya Bond Index | Voya Index vs. Voya Bond Index | Voya Index vs. Voya Limited Maturity | Voya Index vs. Voya Limited Maturity |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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