Correlation Between Fs Managed and Vaneck Emerging
Can any of the company-specific risk be diversified away by investing in both Fs Managed and Vaneck 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 Vaneck 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 Vaneck Emerging Markets, you can compare the effects of market volatilities on Fs Managed and Vaneck 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 Vaneck Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Managed and Vaneck Emerging.
Diversification Opportunities for Fs Managed and Vaneck Emerging
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FMFFX and Vaneck is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fs Managed Futures and Vaneck Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaneck 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 Vaneck Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaneck Emerging Markets has no effect on the direction of Fs Managed i.e., Fs Managed and Vaneck Emerging go up and down completely randomly.
Pair Corralation between Fs Managed and Vaneck Emerging
Assuming the 90 days horizon Fs Managed Futures is expected to under-perform the Vaneck Emerging. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fs Managed Futures is 1.17 times less risky than Vaneck Emerging. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Vaneck Emerging Markets is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,339 in Vaneck Emerging Markets on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Vaneck Emerging Markets or generate 11.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.26% |
| Values | Daily Returns |
Fs Managed Futures vs. Vaneck Emerging Markets
Performance |
| Timeline |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Vaneck Emerging Markets |
Fs Managed and Vaneck Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fs Managed and Vaneck Emerging
The main advantage of trading using opposite Fs Managed and Vaneck Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Managed position performs unexpectedly, Vaneck 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 Vaneck Emerging will offset losses from the drop in Vaneck Emerging's long position.| Fs Managed vs. Small Pany Growth | Fs Managed vs. T Rowe Price | Fs Managed vs. Kinetics Small Cap | Fs Managed vs. Qs Growth Fund |
| Vaneck Emerging vs. Unconstrained Emerging Markets | Vaneck Emerging vs. Unconstrained Emerging Markets | Vaneck Emerging vs. Unconstrained Emerging Markets | Vaneck Emerging vs. Emerging Markets 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |