Correlation Between MFS Municipal and Via Renewables
Can any of the company-specific risk be diversified away by investing in both MFS Municipal and Via Renewables 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 Municipal and Via Renewables into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Municipal Income and Via Renewables, you can compare the effects of market volatilities on MFS Municipal and Via Renewables 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 Municipal with a short position of Via Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Municipal and Via Renewables.
Diversification Opportunities for MFS Municipal and Via Renewables
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MFS and Via is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding MFS Municipal Income and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables and MFS Municipal 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 Municipal Income are associated (or correlated) with Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of MFS Municipal i.e., MFS Municipal and Via Renewables go up and down completely randomly.
Pair Corralation between MFS Municipal and Via Renewables
Considering the 90-day investment horizon MFS Municipal is expected to generate 3.88 times less return on investment than Via Renewables. But when comparing it to its historical volatility, MFS Municipal Income is 1.57 times less risky than Via Renewables. It trades about 0.11 of its potential returns per unit of risk. Via Renewables is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,090 in Via Renewables on August 27, 2024 and sell it today you would earn a total of 122.00 from holding Via Renewables or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Municipal Income vs. Via Renewables
Performance |
| Timeline |
| MFS Municipal Income |
| Via Renewables |
MFS Municipal and Via Renewables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Municipal and Via Renewables
The main advantage of trading using opposite MFS Municipal and Via Renewables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Municipal position performs unexpectedly, Via Renewables 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 Via Renewables will offset losses from the drop in Via Renewables' long position.| MFS Municipal vs. PowerUp Acquisition Corp | MFS Municipal vs. Aurora Innovation | MFS Municipal vs. HUMANA INC | MFS Municipal vs. Aquagold International |
| Via Renewables vs. CMS Energy | Via Renewables vs. ACRES Commercial Realty | Via Renewables vs. Atlanticus Holdings Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |