Correlation Between Largecap Growth and Mfs Research

Can any of the company-specific risk be diversified away by investing in both Largecap Growth and Mfs Research 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 Largecap Growth and Mfs Research into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Largecap Growth Fund and Mfs Research International, you can compare the effects of market volatilities on Largecap Growth and Mfs Research 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 Largecap Growth with a short position of Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Largecap Growth and Mfs Research.

Diversification Opportunities for Largecap Growth and Mfs Research

0.0

Correlation Coefficient

Largecap Growth  Mfs Research

Pay attention - limited upside

The 3 months correlation between Largecap and Mfs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Largecap Growth Fund and Mfs Research International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research Interna and Largecap Growth 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 Largecap Growth Fund are associated (or correlated) with Mfs Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research Interna has no effect on the direction of Largecap Growth i.e., Largecap Growth and Mfs Research go up and down completely randomly.

Pair Corralation between Largecap Growth and Mfs Research

If you would invest (100.00) in Mfs Research International on February 8, 2024 and sell it today you would earn a total of  100.00  from holding Mfs Research International 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

Largecap Growth Fund  vs.  Mfs Research International

Largecap Growth

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Largecap Growth Fund are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Largecap Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mfs Research Interna

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs Research International are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mfs Research is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Largecap Growth and Mfs Research

The main advantage of trading using opposite Largecap Growth and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Largecap Growth position performs unexpectedly, Mfs Research 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 Mfs Research will offset losses from the drop in Mfs Research's long position.

The idea behind Largecap Growth Fund and Mfs Research International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.