Correlation Between Firsthand Technology and Fs Managed
Can any of the company-specific risk be diversified away by investing in both Firsthand Technology and Fs Managed 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 Firsthand Technology and Fs Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Technology Opportunities and Fs Managed Futures, you can compare the effects of market volatilities on Firsthand Technology and Fs Managed 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 Firsthand Technology with a short position of Fs Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Technology and Fs Managed.
Diversification Opportunities for Firsthand Technology and Fs Managed
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FIRSTHAND and FMFFX is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Opportuni and Fs Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Managed Futures and Firsthand Technology 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 Firsthand Technology Opportunities are associated (or correlated) with Fs Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Managed Futures has no effect on the direction of Firsthand Technology i.e., Firsthand Technology and Fs Managed go up and down completely randomly.
Pair Corralation between Firsthand Technology and Fs Managed
If you would invest 356.00 in Firsthand Technology Opportunities on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Firsthand Technology Opportunities or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Firsthand Technology Opportuni vs. Fs Managed Futures
Performance |
| Timeline |
| Firsthand Technology |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Firsthand Technology and Fs Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Technology and Fs Managed
The main advantage of trading using opposite Firsthand Technology and Fs Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Technology position performs unexpectedly, Fs Managed 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 Managed will offset losses from the drop in Fs Managed's long position.| Firsthand Technology vs. Berkshire Focus | Firsthand Technology vs. Red Oak Technology | Firsthand Technology vs. Jacob Internet Fund | Firsthand Technology vs. Kinetics Internet Fund |
| Fs Managed vs. Small Pany Growth | Fs Managed vs. T Rowe Price | Fs Managed vs. Kinetics Small Cap | Fs Managed vs. Qs Growth Fund |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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