Correlation Between Fs Managed and Boston Common
Can any of the company-specific risk be diversified away by investing in both Fs Managed and Boston Common 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 Boston Common 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 Boston Mon Equity, you can compare the effects of market volatilities on Fs Managed and Boston Common 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 Boston Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Managed and Boston Common.
Diversification Opportunities for Fs Managed and Boston Common
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FMFFX and Boston is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fs Managed Futures and Boston Mon Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Mon Equity 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 Boston Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Mon Equity has no effect on the direction of Fs Managed i.e., Fs Managed and Boston Common go up and down completely randomly.
Pair Corralation between Fs Managed and Boston Common
Assuming the 90 days horizon Fs Managed Futures is expected to under-perform the Boston Common. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fs Managed Futures is 1.26 times less risky than Boston Common. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Boston Mon Equity is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,329 in Boston Mon Equity on August 29, 2024 and sell it today you would earn a total of 2,169 from holding Boston Mon Equity or generate 40.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.35% |
| Values | Daily Returns |
Fs Managed Futures vs. Boston Mon Equity
Performance |
| Timeline |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Boston Mon Equity |
Fs Managed and Boston Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fs Managed and Boston Common
The main advantage of trading using opposite Fs Managed and Boston Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Managed position performs unexpectedly, Boston Common 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 Boston Common will offset losses from the drop in Boston Common's long position.| Fs Managed vs. Firsthand Technology Opportunities | Fs Managed vs. Mfs Technology Fund | Fs Managed vs. Blackrock Science Technology | Fs Managed vs. Science Technology Fund |
| Boston Common vs. Rbc Ultra Short Fixed | Boston Common vs. Ambrus Core Bond | Boston Common vs. Rationalpier 88 Convertible | Boston Common vs. Ms Global Fixed |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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