Correlation Between Siit High and Fs Multi-strategy
Can any of the company-specific risk be diversified away by investing in both Siit High 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 Siit High 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 Siit High Yield and Fs Multi Strategy Alt, you can compare the effects of market volatilities on Siit High 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 Siit High with a short position of Fs Multi-strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Fs Multi-strategy.
Diversification Opportunities for Siit High and Fs Multi-strategy
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and FSMSX is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield 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 Siit High 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 Siit High Yield 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 Siit High i.e., Siit High and Fs Multi-strategy go up and down completely randomly.
Pair Corralation between Siit High and Fs Multi-strategy
Assuming the 90 days horizon Siit High Yield is expected to under-perform the Fs Multi-strategy. In addition to that, Siit High is 1.96 times more volatile than Fs Multi Strategy Alt. It trades about -0.34 of its total potential returns per unit of risk. Fs Multi Strategy Alt is currently generating about -0.35 per unit of volatility. If you would invest 1,125 in Fs Multi Strategy Alt on December 30, 2024 and sell it today you would lose (9.00) from holding Fs Multi Strategy Alt or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| Siit High Yield |
| Fs Multi Strategy |
Siit High and Fs Multi-strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Fs Multi-strategy
The main advantage of trading using opposite Siit High and Fs Multi-strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High 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.| Siit High vs. Rbc China Equity | ||
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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