Correlation Between Investec Emerging and Fs Managed
Can any of the company-specific risk be diversified away by investing in both Investec Emerging 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 Investec Emerging and Fs Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Fs Managed Futures, you can compare the effects of market volatilities on Investec Emerging 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 Investec Emerging with a short position of Fs Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Fs Managed.
Diversification Opportunities for Investec Emerging and Fs Managed
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Investec and FMFFX is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets 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 Investec 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 Investec Emerging Markets 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 Investec Emerging i.e., Investec Emerging and Fs Managed go up and down completely randomly.
Pair Corralation between Investec Emerging and Fs Managed
Assuming the 90 days horizon Investec Emerging Markets is expected to generate 1.3 times more return on investment than Fs Managed. However, Investec Emerging is 1.3 times more volatile than Fs Managed Futures. It trades about 0.05 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 926.00 in Investec Emerging Markets on August 28, 2024 and sell it today you would earn a total of 146.00 from holding Investec Emerging Markets or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.92% |
| Values | Daily Returns |
Investec Emerging Markets vs. Fs Managed Futures
Performance |
| Timeline |
| Investec Emerging Markets |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Investec Emerging and Fs Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Fs Managed
The main advantage of trading using opposite Investec Emerging and Fs Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging 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.| Investec Emerging vs. Versatile Bond Portfolio | Investec Emerging vs. Ishares Municipal Bond | Investec Emerging vs. T Rowe Price | Investec Emerging vs. Dws Government Money |
| Fs Managed vs. Investec Emerging Markets | Fs Managed vs. Ashmore Emerging Markets | Fs Managed vs. Shelton Emerging Markets | Fs Managed vs. Artisan Emerging Markets |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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