Correlation Between Fs Managed and Acadian Emerging
Can any of the company-specific risk be diversified away by investing in both Fs Managed and Acadian Emerging 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 Fs Managed and Acadian Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fs Managed Futures and Acadian Emerging Markets, you can compare the effects of market volatilities on Fs Managed and Acadian Emerging 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 Fs Managed with a short position of Acadian Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Managed and Acadian Emerging.
Diversification Opportunities for Fs Managed and Acadian Emerging
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FMFFX and Acadian is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Fs Managed Futures and Acadian Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadian Emerging Markets and Fs Managed 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 Fs Managed Futures are associated (or correlated) with Acadian Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadian Emerging Markets has no effect on the direction of Fs Managed i.e., Fs Managed and Acadian Emerging go up and down completely randomly.
Pair Corralation between Fs Managed and Acadian Emerging
Assuming the 90 days horizon Fs Managed Futures is expected to under-perform the Acadian Emerging. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fs Managed Futures is 1.22 times less risky than Acadian Emerging. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Acadian Emerging Markets is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,891 in Acadian Emerging Markets on September 2, 2024 and sell it today you would earn a total of 443.00 from holding Acadian Emerging Markets or generate 23.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.2% |
| Values | Daily Returns |
Fs Managed Futures vs. Acadian Emerging Markets
Performance |
| Timeline |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Acadian Emerging Markets |
Fs Managed and Acadian Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fs Managed and Acadian Emerging
The main advantage of trading using opposite Fs Managed and Acadian Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Managed position performs unexpectedly, Acadian Emerging 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 Acadian Emerging will offset losses from the drop in Acadian Emerging's long position.| Fs Managed vs. American Century Diversified | Fs Managed vs. Western Asset Diversified | Fs Managed vs. Sentinel Small Pany | Fs Managed vs. Adams Diversified Equity |
| Acadian Emerging vs. Driehaus Emerging Markets | Acadian Emerging vs. Oakmark International Small | Acadian Emerging vs. T Rowe Price | Acadian Emerging vs. Emerging Markets Portfolio |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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