Correlation Between Icon Financial and Mfs Utilities
Can any of the company-specific risk be diversified away by investing in both Icon Financial 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 Icon Financial and Mfs Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Financial Fund and Mfs Utilities Fund, you can compare the effects of market volatilities on Icon Financial 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 Icon Financial with a short position of Mfs Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Mfs Utilities.
Diversification Opportunities for Icon Financial and Mfs Utilities
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Icon and Mfs is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Mfs Utilities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Utilities and Icon Financial 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 Icon Financial Fund 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 Icon Financial i.e., Icon Financial and Mfs Utilities go up and down completely randomly.
Pair Corralation between Icon Financial and Mfs Utilities
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Mfs Utilities. In addition to that, Icon Financial is 2.39 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 0.12 per unit of volatility. If you would invest 2,332 in Mfs Utilities Fund on September 3, 2024 and sell it today you would earn a total of 149.00 from holding Mfs Utilities Fund or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Financial Fund vs. Mfs Utilities Fund
Performance |
| Timeline |
| Icon Financial |
| Mfs Utilities |
Icon Financial and Mfs Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Mfs Utilities
The main advantage of trading using opposite Icon Financial and Mfs Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial 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.| Icon Financial vs. Vanguard Financials Index | Icon Financial vs. Regional Bank Fund | Icon Financial vs. T Rowe Price | Icon Financial vs. Financial Industries Fund |
| Mfs Utilities vs. Transamerica Financial Life | Mfs Utilities vs. Mesirow Financial Small | Mfs Utilities vs. Royce Global Financial | Mfs Utilities vs. Icon Financial Fund |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |