Correlation Between Ellomay Capital and Mfs Utilities
Can any of the company-specific risk be diversified away by investing in both Ellomay Capital and Mfs Utilities 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 Ellomay Capital and Mfs Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellomay Capital and Mfs Utilities Fund, you can compare the effects of market volatilities on Ellomay Capital and Mfs Utilities 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 Ellomay Capital with a short position of Mfs Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellomay Capital and Mfs Utilities.
Diversification Opportunities for Ellomay Capital and Mfs Utilities
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ellomay and Mfs is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Ellomay Capital and Mfs Utilities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Utilities and Ellomay Capital 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 Ellomay Capital are associated (or correlated) with Mfs Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Utilities has no effect on the direction of Ellomay Capital i.e., Ellomay Capital and Mfs Utilities go up and down completely randomly.
Pair Corralation between Ellomay Capital and Mfs Utilities
Given the investment horizon of 90 days Ellomay Capital is expected to under-perform the Mfs Utilities. In addition to that, Ellomay Capital is 2.33 times more volatile than Mfs Utilities Fund. It trades about -0.04 of its total potential returns per unit of risk. Mfs Utilities Fund is currently generating about 0.07 per unit of volatility. If you would invest 2,229 in Mfs Utilities Fund on November 9, 2024 and sell it today you would earn a total of 35.00 from holding Mfs Utilities Fund or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellomay Capital vs. Mfs Utilities Fund
Performance |
| Timeline |
| Ellomay Capital |
| Mfs Utilities |
Ellomay Capital and Mfs Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellomay Capital and Mfs Utilities
The main advantage of trading using opposite Ellomay Capital and Mfs Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellomay Capital position performs unexpectedly, Mfs Utilities 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 Utilities will offset losses from the drop in Mfs Utilities' long position.| Ellomay Capital vs. Enlight Renewable Energy | Ellomay Capital vs. Renew Energy Global | Ellomay Capital vs. Clearway Energy Class | Ellomay Capital vs. Excelerate Energy |
| Mfs Utilities vs. Dreyfusstandish Global Fixed | Mfs Utilities vs. Artisan High Income | Mfs Utilities vs. Gmo High Yield | Mfs Utilities vs. Doubleline Total Return |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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