Correlation Between California High and Fs Multi
Can any of the company-specific risk be diversified away by investing in both California High and Fs Multi 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 California High and Fs Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California High Yield Municipal and Fs Multi Strategy Alt, you can compare the effects of market volatilities on California High and Fs Multi 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 California High with a short position of Fs Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of California High and Fs Multi.
Diversification Opportunities for California High and Fs Multi
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between California and FSMMX is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding California High Yield Municipa and Fs Multi Strategy Alt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Multi Strategy and California High 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 California High Yield Municipal are associated (or correlated) with Fs Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Multi Strategy has no effect on the direction of California High i.e., California High and Fs Multi go up and down completely randomly.
Pair Corralation between California High and Fs Multi
Assuming the 90 days horizon California High Yield Municipal is expected to generate 1.04 times more return on investment than Fs Multi. However, California High is 1.04 times more volatile than Fs Multi Strategy Alt. It trades about 0.15 of its potential returns per unit of risk. Fs Multi Strategy Alt is currently generating about 0.03 per unit of risk. If you would invest 899.00 in California High Yield Municipal on September 14, 2024 and sell it today you would earn a total of 92.00 from holding California High Yield Municipal or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
California High Yield Municipa vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| California High Yield |
| Fs Multi Strategy |
California High and Fs Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California High and Fs Multi
The main advantage of trading using opposite California High and Fs Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California High position performs unexpectedly, Fs Multi 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 Fs Multi will offset losses from the drop in Fs Multi's long position.| California High vs. Copeland Risk Managed | California High vs. Franklin High Income | California High vs. Intal High Relative | California High vs. Western Asset High |
| Fs Multi vs. Blrc Sgy Mnp | Fs Multi vs. Counterpoint Tactical Municipal | Fs Multi vs. Alliancebernstein National Municipal | Fs Multi vs. California High Yield Municipal |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |