Correlation Between Mfs Value and Fair Isaac
Can any of the company-specific risk be diversified away by investing in both Mfs Value and Fair Isaac 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 Fair Isaac 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 Fair Isaac, you can compare the effects of market volatilities on Mfs Value and Fair Isaac 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 Fair Isaac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Value and Fair Isaac.
Diversification Opportunities for Mfs Value and Fair Isaac
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mfs and Fair is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Value Fund and Fair Isaac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fair Isaac 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 Fair Isaac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fair Isaac has no effect on the direction of Mfs Value i.e., Mfs Value and Fair Isaac go up and down completely randomly.
Pair Corralation between Mfs Value and Fair Isaac
Assuming the 90 days horizon Mfs Value Fund is expected to generate 0.4 times more return on investment than Fair Isaac. However, Mfs Value Fund is 2.52 times less risky than Fair Isaac. It trades about -0.2 of its potential returns per unit of risk. Fair Isaac is currently generating about -0.15 per unit of risk. If you would invest 5,095 in Mfs Value Fund on January 27, 2024 and sell it today you would lose (131.00) from holding Mfs Value Fund or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Value Fund vs. Fair Isaac
Performance |
| Timeline |
| Mfs Value Fund |
| Fair Isaac |
Mfs Value and Fair Isaac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Value and Fair Isaac
The main advantage of trading using opposite Mfs Value and Fair Isaac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Value position performs unexpectedly, Fair Isaac 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 Fair Isaac will offset losses from the drop in Fair Isaac's long position.| Mfs Value vs. Mfs Prudent Investor | Mfs Value vs. Mfs Prudent Investor | Mfs Value vs. Mfs Prudent Investor | Mfs Value vs. Mfs Prudent Investor |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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