Correlation Between Fs Managed and Global Hard
Can any of the company-specific risk be diversified away by investing in both Fs Managed and Global Hard 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 Global Hard 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 Global Hard Assets, you can compare the effects of market volatilities on Fs Managed and Global Hard 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 Global Hard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Managed and Global Hard.
Diversification Opportunities for Fs Managed and Global Hard
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FMFFX and Global is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fs Managed Futures and Global Hard Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Hard Assets 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 Global Hard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Hard Assets has no effect on the direction of Fs Managed i.e., Fs Managed and Global Hard go up and down completely randomly.
Pair Corralation between Fs Managed and Global Hard
Assuming the 90 days horizon Fs Managed Futures is expected to under-perform the Global Hard. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fs Managed Futures is 1.28 times less risky than Global Hard. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Global Hard Assets is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,188 in Global Hard Assets on September 3, 2024 and sell it today you would earn a total of 229.00 from holding Global Hard Assets or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 87.28% |
| Values | Daily Returns |
Fs Managed Futures vs. Global Hard Assets
Performance |
| Timeline |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global Hard Assets |
Fs Managed and Global Hard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fs Managed and Global Hard
The main advantage of trading using opposite Fs Managed and Global Hard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Managed position performs unexpectedly, Global Hard 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 Global Hard will offset losses from the drop in Global Hard's long position.| Fs Managed vs. Prudential Jennison International | Fs Managed vs. Fidelity New Markets | Fs Managed vs. Ohio Variable College |
| Global Hard vs. Semiconductor Ultrasector Profund | Global Hard vs. Issachar Fund Class | Global Hard vs. Nasdaq 100 Fund Class | Global Hard vs. Ab Small 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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