Correlation Between Mfs Value and Genomma Lab
Can any of the company-specific risk be diversified away by investing in both Mfs Value and Genomma Lab 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 Genomma Lab 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 Genomma Lab Internacional, you can compare the effects of market volatilities on Mfs Value and Genomma Lab 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 Genomma Lab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and Genomma Lab.
Diversification Opportunities for Mfs Value and Genomma Lab
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mfs and Genomma is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund and Genomma Lab Internacional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genomma Lab Internacional 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 Genomma Lab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genomma Lab Internacional has no effect on the direction of Mfs Value i.e., Mfs Value and Genomma Lab go up and down completely randomly.
Pair Corralation between Mfs Value and Genomma Lab
Assuming the 90 days horizon Mfs Value Fund is expected to generate 0.31 times more return on investment than Genomma Lab. However, Mfs Value Fund is 3.22 times less risky than Genomma Lab. It trades about -0.07 of its potential returns per unit of risk. Genomma Lab Internacional is currently generating about -0.12 per unit of risk. If you would invest 5,019 in Mfs Value Fund on January 26, 2024 and sell it today you would lose (53.00) from holding Mfs Value Fund or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mfs Value Fund vs. Genomma Lab Internacional
Performance |
| Timeline |
| Mfs Value Fund |
| Genomma Lab Internacional |
Mfs Value and Genomma Lab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Value and Genomma Lab
The main advantage of trading using opposite Mfs Value and Genomma Lab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value position performs unexpectedly, Genomma Lab 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 Genomma Lab will offset losses from the drop in Genomma Lab's long position.| Mfs Value vs. Edgewood Growth Fund | Mfs Value vs. Hartford Schroders Emerging | Mfs Value vs. HUMANA INC | Mfs Value vs. Aquagold International |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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