Correlation Between Fs Managed and Otter Creek
Can any of the company-specific risk be diversified away by investing in both Fs Managed and Otter Creek 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 Otter Creek 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 Otter Creek Longshort, you can compare the effects of market volatilities on Fs Managed and Otter Creek 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 Otter Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Managed and Otter Creek.
Diversification Opportunities for Fs Managed and Otter Creek
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FMFFX and Otter is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Fs Managed Futures and Otter Creek Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otter Creek Longshort 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 Otter Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otter Creek Longshort has no effect on the direction of Fs Managed i.e., Fs Managed and Otter Creek go up and down completely randomly.
Pair Corralation between Fs Managed and Otter Creek
If you would invest 870.00 in Fs Managed Futures on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Fs Managed Futures or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Fs Managed Futures vs. Otter Creek Longshort
Performance |
| Timeline |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Otter Creek Longshort |
Fs Managed and Otter Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fs Managed and Otter Creek
The main advantage of trading using opposite Fs Managed and Otter Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Managed position performs unexpectedly, Otter Creek 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 Otter Creek will offset losses from the drop in Otter Creek'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 |
| Otter Creek vs. HUMANA INC | Otter Creek vs. Aquagold International | Otter Creek vs. Barloworld Ltd ADR | Otter Creek vs. Morningstar Unconstrained Allocation |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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