Correlation Between Mfs Utilities and Hawaiian Electric
Can any of the company-specific risk be diversified away by investing in both Mfs Utilities and Hawaiian Electric 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 Utilities and Hawaiian Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Utilities Fund and Hawaiian Electric Industries, you can compare the effects of market volatilities on Mfs Utilities and Hawaiian Electric 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 Utilities with a short position of Hawaiian Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Utilities and Hawaiian Electric.
Diversification Opportunities for Mfs Utilities and Hawaiian Electric
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mfs and Hawaiian is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Utilities Fund and Hawaiian Electric Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawaiian Electric and Mfs Utilities 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 Utilities Fund are associated (or correlated) with Hawaiian Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawaiian Electric has no effect on the direction of Mfs Utilities i.e., Mfs Utilities and Hawaiian Electric go up and down completely randomly.
Pair Corralation between Mfs Utilities and Hawaiian Electric
Assuming the 90 days horizon Mfs Utilities Fund is expected to generate 0.2 times more return on investment than Hawaiian Electric. However, Mfs Utilities Fund is 4.93 times less risky than Hawaiian Electric. It trades about -0.01 of its potential returns per unit of risk. Hawaiian Electric Industries is currently generating about -0.03 per unit of risk. If you would invest 2,232 in Mfs Utilities Fund on January 8, 2025 and sell it today you would lose (135.00) from holding Mfs Utilities Fund or give up 6.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mfs Utilities Fund vs. Hawaiian Electric Industries
Performance |
| Timeline |
| Mfs Utilities |
| Hawaiian Electric |
Mfs Utilities and Hawaiian Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Utilities and Hawaiian Electric
The main advantage of trading using opposite Mfs Utilities and Hawaiian Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Utilities position performs unexpectedly, Hawaiian Electric 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 Hawaiian Electric will offset losses from the drop in Hawaiian Electric's long position.| Mfs Utilities vs. Doubleline Emerging Markets | Mfs Utilities vs. Angel Oak Multi Strategy | Mfs Utilities vs. Boston Partners Emerging | Mfs Utilities vs. Virtus Emerging Markets |
| Hawaiian Electric vs. DTE Energy | Hawaiian Electric vs. Alliant Energy Corp | Hawaiian Electric vs. Ameren Corp | Hawaiian Electric vs. CenterPoint Energy |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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