Correlation Between Firsthand Alternative and Managed Account
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Managed Account 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 Firsthand Alternative and Managed Account into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Managed Account Series, you can compare the effects of market volatilities on Firsthand Alternative and Managed Account 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 Firsthand Alternative with a short position of Managed Account. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Managed Account.
Diversification Opportunities for Firsthand Alternative and Managed Account
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Firsthand and Managed is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Managed Account Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Managed Account Series and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Managed Account. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Managed Account Series has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Managed Account go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Managed Account
Assuming the 90 days horizon Firsthand Alternative Energy is expected to under-perform the Managed Account. In addition to that, Firsthand Alternative is 6.59 times more volatile than Managed Account Series. It trades about 0.0 of its total potential returns per unit of risk. Managed Account Series is currently generating about 0.19 per unit of volatility. If you would invest 890.00 in Managed Account Series on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Managed Account Series or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Managed Account Series
Performance |
| Timeline |
| Firsthand Alternative |
| Managed Account Series |
Firsthand Alternative and Managed Account Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Managed Account
The main advantage of trading using opposite Firsthand Alternative and Managed Account positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Managed Account 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 Managed Account will offset losses from the drop in Managed Account's long position.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Managed Account vs. Goehring Rozencwajg Resources | Managed Account vs. Firsthand Alternative Energy | Managed Account vs. Gamco Natural Resources | Managed Account vs. World Energy 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |