Correlation Between Mfs Utilities and Fidelity Capital
Can any of the company-specific risk be diversified away by investing in both Mfs Utilities and Fidelity Capital 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 Fidelity Capital 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 Fidelity Capital Income, you can compare the effects of market volatilities on Mfs Utilities and Fidelity Capital 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 Fidelity Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Utilities and Fidelity Capital.
Diversification Opportunities for Mfs Utilities and Fidelity Capital
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mfs and Fidelity is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Utilities Fund and Fidelity Capital Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Capital Income 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 Fidelity Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Capital Income has no effect on the direction of Mfs Utilities i.e., Mfs Utilities and Fidelity Capital go up and down completely randomly.
Pair Corralation between Mfs Utilities and Fidelity Capital
Assuming the 90 days horizon Mfs Utilities Fund is expected to generate 2.69 times more return on investment than Fidelity Capital. However, Mfs Utilities is 2.69 times more volatile than Fidelity Capital Income. It trades about 0.11 of its potential returns per unit of risk. Fidelity Capital Income is currently generating about 0.16 per unit of risk. If you would invest 2,236 in Mfs Utilities Fund on August 29, 2024 and sell it today you would earn a total of 267.00 from holding Mfs Utilities Fund or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Utilities Fund vs. Fidelity Capital Income
Performance |
| Timeline |
| Mfs Utilities |
| Fidelity Capital Income |
Mfs Utilities and Fidelity Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Utilities and Fidelity Capital
The main advantage of trading using opposite Mfs Utilities and Fidelity Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Utilities position performs unexpectedly, Fidelity Capital 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 Fidelity Capital will offset losses from the drop in Fidelity Capital's long position.| Mfs Utilities vs. Mesirow Financial Small | Mfs Utilities vs. T Rowe Price | Mfs Utilities vs. Hennessy Large Cap | Mfs Utilities vs. 1919 Financial Services |
| Fidelity Capital vs. Fidelity High Income | Fidelity Capital vs. Fidelity New Markets | Fidelity Capital vs. Fidelity Total Bond | Fidelity Capital vs. Fidelity Balanced 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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