Correlation Between Origin Emerging and Fs Multi-strategy
Can any of the company-specific risk be diversified away by investing in both Origin Emerging and Fs Multi-strategy 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 Origin Emerging and Fs Multi-strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Emerging Markets and Fs Multi Strategy Alt, you can compare the effects of market volatilities on Origin Emerging and Fs Multi-strategy 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 Origin Emerging with a short position of Fs Multi-strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Emerging and Fs Multi-strategy.
Diversification Opportunities for Origin Emerging and Fs Multi-strategy
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and FSMSX is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Origin Emerging Markets and Fs Multi Strategy Alt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Multi Strategy and Origin Emerging 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 Origin Emerging Markets are associated (or correlated) with Fs Multi-strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Multi Strategy has no effect on the direction of Origin Emerging i.e., Origin Emerging and Fs Multi-strategy go up and down completely randomly.
Pair Corralation between Origin Emerging and Fs Multi-strategy
Assuming the 90 days horizon Origin Emerging Markets is expected to generate 0.66 times more return on investment than Fs Multi-strategy. However, Origin Emerging Markets is 1.52 times less risky than Fs Multi-strategy. It trades about -0.04 of its potential returns per unit of risk. Fs Multi Strategy Alt is currently generating about -0.17 per unit of risk. If you would invest 1,050 in Origin Emerging Markets on October 7, 2024 and sell it today you would lose (4.00) from holding Origin Emerging Markets or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Origin Emerging Markets vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| Origin Emerging Markets |
| Fs Multi Strategy |
Origin Emerging and Fs Multi-strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Emerging and Fs Multi-strategy
The main advantage of trading using opposite Origin Emerging and Fs Multi-strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Emerging position performs unexpectedly, Fs Multi-strategy 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 Fs Multi-strategy will offset losses from the drop in Fs Multi-strategy's long position.| Origin Emerging vs. Transamerica Financial Life | Origin Emerging vs. Davis Financial Fund | Origin Emerging vs. Putnam Global Financials | Origin Emerging vs. John Hancock Financial |
| Fs Multi-strategy vs. Franklin Vertible Securities | Fs Multi-strategy vs. Absolute Convertible Arbitrage | Fs Multi-strategy vs. Fidelity Vertible Securities | Fs Multi-strategy vs. Victory Incore Investment |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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