Correlation Between Fs Managed and Power Global
Can any of the company-specific risk be diversified away by investing in both Fs Managed and Power Global 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 Power Global 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 Power Global Tactical, you can compare the effects of market volatilities on Fs Managed and Power Global 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 Power Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Managed and Power Global.
Diversification Opportunities for Fs Managed and Power Global
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FMFFX and Power is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fs Managed Futures and Power Global Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Global Tactical 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 Power Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Global Tactical has no effect on the direction of Fs Managed i.e., Fs Managed and Power Global go up and down completely randomly.
Pair Corralation between Fs Managed and Power Global
Assuming the 90 days horizon Fs Managed Futures is expected to under-perform the Power Global. In addition to that, Fs Managed is 1.45 times more volatile than Power Global Tactical. It trades about -0.01 of its total potential returns per unit of risk. Power Global Tactical is currently generating about 0.09 per unit of volatility. If you would invest 891.00 in Power Global Tactical on September 3, 2024 and sell it today you would earn a total of 214.00 from holding Power Global Tactical or generate 24.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.14% |
| Values | Daily Returns |
Fs Managed Futures vs. Power Global Tactical
Performance |
| Timeline |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Power Global Tactical |
Fs Managed and Power Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fs Managed and Power Global
The main advantage of trading using opposite Fs Managed and Power Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Managed position performs unexpectedly, Power Global 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 Power Global will offset losses from the drop in Power Global's long position.| Fs Managed vs. Prudential Jennison International | Fs Managed vs. Fidelity New Markets | Fs Managed vs. Ohio Variable College |
| Power Global vs. Goldman Sachs Real | Power Global vs. Great West Real Estate | Power Global vs. Jhancock Real Estate | Power Global vs. Amg Managers Centersquare |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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