Correlation Between Fmasx and State Street
Can any of the company-specific risk be diversified away by investing in both Fmasx and State Street 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 Fmasx and State Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fmasx and State Street Global, you can compare the effects of market volatilities on Fmasx and State Street 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 Fmasx with a short position of State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fmasx and State Street.
Diversification Opportunities for Fmasx and State Street
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fmasx and State is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fmasx and State Street Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Global and Fmasx 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 Fmasx are associated (or correlated) with State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Global has no effect on the direction of Fmasx i.e., Fmasx and State Street go up and down completely randomly.
Pair Corralation between Fmasx and State Street
Assuming the 90 days horizon Fmasx is expected to generate 1.54 times more return on investment than State Street. However, Fmasx is 1.54 times more volatile than State Street Global. It trades about 0.02 of its potential returns per unit of risk. State Street Global is currently generating about -0.08 per unit of risk. If you would invest 1,514 in Fmasx on October 24, 2024 and sell it today you would earn a total of 12.00 from holding Fmasx or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fmasx vs. State Street Global
Performance |
| Timeline |
| Fmasx |
| State Street Global |
Fmasx and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fmasx and State Street
The main advantage of trading using opposite Fmasx and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fmasx position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Fmasx vs. Aqr Managed Futures | Fmasx vs. Ab Bond Inflation | Fmasx vs. Ab Bond Inflation | Fmasx vs. Atac Inflation Rotation |
| State Street vs. Mid Cap Value Profund | State Street vs. Lord Abbett Small | State Street vs. Victory Rs Partners | State Street vs. Ultrasmall Cap Profund Ultrasmall Cap |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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