Correlation Between Fs Multi-strategy and Vaneck Emerging
Can any of the company-specific risk be diversified away by investing in both Fs Multi-strategy 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 Multi-strategy 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 Multi Strategy Alt and Vaneck Emerging Markets, you can compare the effects of market volatilities on Fs Multi-strategy 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 Multi-strategy with a short position of Vaneck Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Multi-strategy and Vaneck Emerging.
Diversification Opportunities for Fs Multi-strategy and Vaneck Emerging
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FSMMX and Vaneck is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fs Multi Strategy Alt 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 Multi-strategy 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 Multi Strategy Alt 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 Multi-strategy i.e., Fs Multi-strategy and Vaneck Emerging go up and down completely randomly.
Pair Corralation between Fs Multi-strategy and Vaneck Emerging
Assuming the 90 days horizon Fs Multi Strategy Alt is not expected to generate positive returns. However, Fs Multi Strategy Alt is 9.99 times less risky than Vaneck Emerging. It waists most of its returns potential to compensate for thr risk taken. Vaneck Emerging is generating about 0.22 per unit of risk. If you would invest 1,419 in Vaneck Emerging Markets on November 27, 2024 and sell it today you would earn a total of 58.00 from holding Vaneck Emerging Markets or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fs Multi Strategy Alt vs. Vaneck Emerging Markets
Performance |
| Timeline |
| Fs Multi Strategy |
| Vaneck Emerging Markets |
Fs Multi-strategy and Vaneck Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fs Multi-strategy and Vaneck Emerging
The main advantage of trading using opposite Fs Multi-strategy and Vaneck Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Multi-strategy 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 Multi-strategy vs. Fs Real Asset | Fs Multi-strategy vs. Fs Multi Strategy Alt | Fs Multi-strategy vs. Fs Real Asset | Fs Multi-strategy vs. Mndvux |
| Vaneck Emerging vs. Davis Financial Fund | Vaneck Emerging vs. Putnam Global Financials | Vaneck Emerging vs. John Hancock Financial | Vaneck Emerging vs. Financials Ultrasector Profund |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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