Correlation Between Fs Multi-strategy and Ms Global
Can any of the company-specific risk be diversified away by investing in both Fs Multi-strategy and Ms 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 Multi-strategy and Ms Global 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 Ms Global Fixed, you can compare the effects of market volatilities on Fs Multi-strategy and Ms 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 Multi-strategy with a short position of Ms Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Multi-strategy and Ms Global.
Diversification Opportunities for Fs Multi-strategy and Ms Global
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FSMMX and MFIRX is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fs Multi Strategy Alt and Ms Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ms Global Fixed 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 Ms Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ms Global Fixed has no effect on the direction of Fs Multi-strategy i.e., Fs Multi-strategy and Ms Global go up and down completely randomly.
Pair Corralation between Fs Multi-strategy and Ms Global
Assuming the 90 days horizon Fs Multi Strategy Alt is expected to generate 1.55 times more return on investment than Ms Global. However, Fs Multi-strategy is 1.55 times more volatile than Ms Global Fixed. It trades about 0.21 of its potential returns per unit of risk. Ms Global Fixed is currently generating about 0.13 per unit of risk. If you would invest 1,097 in Fs Multi Strategy Alt on October 20, 2024 and sell it today you would earn a total of 11.00 from holding Fs Multi Strategy Alt or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fs Multi Strategy Alt vs. Ms Global Fixed
Performance |
| Timeline |
| Fs Multi Strategy |
| Ms Global Fixed |
Fs Multi-strategy and Ms Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fs Multi-strategy and Ms Global
The main advantage of trading using opposite Fs Multi-strategy and Ms Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Multi-strategy position performs unexpectedly, Ms 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 Ms Global will offset losses from the drop in Ms Global's long position.| Fs Multi-strategy vs. Transamerica Asset Allocation | Fs Multi-strategy vs. Rational Strategic Allocation | Fs Multi-strategy vs. Tax Managed Large Cap | Fs Multi-strategy vs. Alternative Asset Allocation |
| Ms Global vs. Great West Inflation Protected Securities | Ms Global vs. Credit Suisse Multialternative | Ms Global vs. Asg Managed Futures | Ms Global vs. Altegris Futures Evolution |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| 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 | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |