Correlation Between Fluence Energy and MFS Active
Can any of the company-specific risk be diversified away by investing in both Fluence Energy and MFS Active 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 Fluence Energy and MFS Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluence Energy and MFS Active Value, you can compare the effects of market volatilities on Fluence Energy and MFS Active 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 Fluence Energy with a short position of MFS Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluence Energy and MFS Active.
Diversification Opportunities for Fluence Energy and MFS Active
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fluence and MFS is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fluence Energy and MFS Active Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Active Value and Fluence Energy 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 Fluence Energy are associated (or correlated) with MFS Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Active Value has no effect on the direction of Fluence Energy i.e., Fluence Energy and MFS Active go up and down completely randomly.
Pair Corralation between Fluence Energy and MFS Active
Given the investment horizon of 90 days Fluence Energy is expected to generate 9.68 times more return on investment than MFS Active. However, Fluence Energy is 9.68 times more volatile than MFS Active Value. It trades about 0.17 of its potential returns per unit of risk. MFS Active Value is currently generating about 0.14 per unit of risk. If you would invest 470.00 in Fluence Energy on May 30, 2025 and sell it today you would earn a total of 288.00 from holding Fluence Energy or generate 61.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluence Energy vs. MFS Active Value
Performance |
| Timeline |
| Fluence Energy |
| MFS Active Value |
Fluence Energy and MFS Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluence Energy and MFS Active
The main advantage of trading using opposite Fluence Energy and MFS Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluence Energy position performs unexpectedly, MFS Active 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 Active will offset losses from the drop in MFS Active's long position.| Fluence Energy vs. Enlight Renewable Energy | Fluence Energy vs. Renew Energy Global | Fluence Energy vs. Advent Technologies Holdings | Fluence Energy vs. Energy Vault Holdings |
| MFS Active vs. FT Vest Equity | MFS Active vs. Northern Lights | MFS Active vs. Dimensional International High | MFS Active vs. JPMorgan Fundamental Data |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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