Correlation Between Oshaughnessy Market and Fmasx
Can any of the company-specific risk be diversified away by investing in both Oshaughnessy Market and Fmasx 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 Oshaughnessy Market and Fmasx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oshaughnessy Market Leaders and Fmasx, you can compare the effects of market volatilities on Oshaughnessy Market and Fmasx 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 Oshaughnessy Market with a short position of Fmasx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshaughnessy Market and Fmasx.
Diversification Opportunities for Oshaughnessy Market and Fmasx
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oshaughnessy and Fmasx is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Oshaughnessy Market Leaders and Fmasx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fmasx and Oshaughnessy Market 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 Oshaughnessy Market Leaders are associated (or correlated) with Fmasx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fmasx has no effect on the direction of Oshaughnessy Market i.e., Oshaughnessy Market and Fmasx go up and down completely randomly.
Pair Corralation between Oshaughnessy Market and Fmasx
Assuming the 90 days horizon Oshaughnessy Market Leaders is expected to generate 0.97 times more return on investment than Fmasx. However, Oshaughnessy Market Leaders is 1.03 times less risky than Fmasx. It trades about 0.06 of its potential returns per unit of risk. Fmasx is currently generating about -0.03 per unit of risk. If you would invest 1,577 in Oshaughnessy Market Leaders on October 12, 2024 and sell it today you would earn a total of 371.00 from holding Oshaughnessy Market Leaders or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 15.78% |
| Values | Daily Returns |
Oshaughnessy Market Leaders vs. Fmasx
Performance |
| Timeline |
| Oshaughnessy Market |
| Fmasx |
Oshaughnessy Market and Fmasx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oshaughnessy Market and Fmasx
The main advantage of trading using opposite Oshaughnessy Market and Fmasx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshaughnessy Market position performs unexpectedly, Fmasx 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 Fmasx will offset losses from the drop in Fmasx's long position.| Oshaughnessy Market vs. Fmasx | Oshaughnessy Market vs. Ab New York | Oshaughnessy Market vs. Small Pany Growth | Oshaughnessy Market vs. Arrow Managed Futures |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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