Correlation Between MFS Government and Gabelli Global
Can any of the company-specific risk be diversified away by investing in both MFS Government and Gabelli Global 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 Government and Gabelli Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Government Markets and Gabelli Global Utility, you can compare the effects of market volatilities on MFS Government and Gabelli Global 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 Government with a short position of Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Government and Gabelli Global.
Diversification Opportunities for MFS Government and Gabelli Global
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MFS and Gabelli is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding MFS Government Markets and Gabelli Global Utility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Global Utility and MFS Government 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 Government Markets are associated (or correlated) with Gabelli Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Global Utility has no effect on the direction of MFS Government i.e., MFS Government and Gabelli Global go up and down completely randomly.
Pair Corralation between MFS Government and Gabelli Global
Considering the 90-day investment horizon MFS Government Markets is expected to generate 1.05 times more return on investment than Gabelli Global. However, MFS Government is 1.05 times more volatile than Gabelli Global Utility. It trades about 0.11 of its potential returns per unit of risk. Gabelli Global Utility is currently generating about 0.11 per unit of risk. If you would invest 300.00 in MFS Government Markets on August 31, 2025 and sell it today you would earn a total of 13.00 from holding MFS Government Markets or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
MFS Government Markets vs. Gabelli Global Utility
Performance |
| Timeline |
| MFS Government Markets |
| Gabelli Global Utility |
MFS Government and Gabelli Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Government and Gabelli Global
The main advantage of trading using opposite MFS Government and Gabelli Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Government position performs unexpectedly, Gabelli Global 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 Gabelli Global will offset losses from the drop in Gabelli Global's long position.| MFS Government vs. BlackRock Income Closed | MFS Government vs. FT Vest Equity | MFS Government vs. Zillow Group Class | MFS Government vs. Northern Lights |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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