Correlation Between MFS Investment and Gabelli Utility
Can any of the company-specific risk be diversified away by investing in both MFS Investment and Gabelli Utility 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 Investment and Gabelli Utility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Investment Grade and Gabelli Utility Closed, you can compare the effects of market volatilities on MFS Investment and Gabelli Utility 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 Investment with a short position of Gabelli Utility. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Gabelli Utility.
Diversification Opportunities for MFS Investment and Gabelli Utility
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MFS and Gabelli is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Gabelli Utility Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Utility Closed and MFS Investment 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 Investment Grade are associated (or correlated) with Gabelli Utility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Utility Closed has no effect on the direction of MFS Investment i.e., MFS Investment and Gabelli Utility go up and down completely randomly.
Pair Corralation between MFS Investment and Gabelli Utility
Considering the 90-day investment horizon MFS Investment Grade is expected to generate 0.31 times more return on investment than Gabelli Utility. However, MFS Investment Grade is 3.18 times less risky than Gabelli Utility. It trades about 0.09 of its potential returns per unit of risk. Gabelli Utility Closed is currently generating about -0.12 per unit of risk. If you would invest 802.00 in MFS Investment Grade on September 2, 2024 and sell it today you would earn a total of 22.00 from holding MFS Investment Grade or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Investment Grade vs. Gabelli Utility Closed
Performance |
| Timeline |
| MFS Investment Grade |
| Gabelli Utility Closed |
MFS Investment and Gabelli Utility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Gabelli Utility
The main advantage of trading using opposite MFS Investment and Gabelli Utility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment position performs unexpectedly, Gabelli Utility 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 Gabelli Utility will offset losses from the drop in Gabelli Utility's long position.| MFS Investment vs. Invesco High Income | MFS Investment vs. Eaton Vance National | MFS Investment vs. Nuveen California Select | MFS Investment vs. Federated Premier Municipal |
| Gabelli Utility vs. Gabelli Convertible And | Gabelli Utility vs. Gabelli Equity Trust | Gabelli Utility vs. Gabelli Healthcare WellnessRx | Gabelli Utility vs. GAMCO Natural Resources |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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