Correlation Between Science Technology and Fs Managed
Can any of the company-specific risk be diversified away by investing in both Science 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 Science 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 Science Technology Fund and Fs Managed Futures, you can compare the effects of market volatilities on Science 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 Science Technology with a short position of Fs Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Science Technology and Fs Managed.
Diversification Opportunities for Science Technology and Fs Managed
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Science and FMFFX is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Science Technology Fund 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 Science 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 Science Technology Fund 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 Science Technology i.e., Science Technology and Fs Managed go up and down completely randomly.
Pair Corralation between Science Technology and Fs Managed
Assuming the 90 days horizon Science Technology Fund is expected to generate 1.81 times more return on investment than Fs Managed. However, Science Technology is 1.81 times more volatile than Fs Managed Futures. It trades about 0.09 of its potential returns per unit of risk. Fs Managed Futures is currently generating about -0.03 per unit of risk. If you would invest 2,033 in Science Technology Fund on August 29, 2024 and sell it today you would earn a total of 839.00 from holding Science Technology Fund or generate 41.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.35% |
| Values | Daily Returns |
Science Technology Fund vs. Fs Managed Futures
Performance |
| Timeline |
| Science Technology |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Science Technology and Fs Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Science Technology and Fs Managed
The main advantage of trading using opposite Science Technology and Fs Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Science 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.| Science Technology vs. Virtus Convertible | Science Technology vs. Gabelli Convertible And | Science Technology vs. Putnam Convertible Incm Gwth | Science Technology vs. Lord Abbett Convertible |
| Fs Managed vs. Firsthand Technology Opportunities | Fs Managed vs. Mfs Technology Fund | Fs Managed vs. Blackrock Science Technology | Fs Managed vs. Science Technology 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |