Correlation Between Fs Managed and Fs Real

Can any of the company-specific risk be diversified away by investing in both Fs Managed and Fs Real 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 Fs Managed and Fs Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fs Managed Futures and Fs Real Asset, you can compare the effects of market volatilities on Fs Managed and Fs Real 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 Fs Managed with a short position of Fs Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Managed and Fs Real.

Diversification Opportunities for Fs Managed and Fs Real

0.84

Correlation Coefficient

Fs Managed  Fs Real

Very poor diversification

The 3 months correlation between FMGFX and FSRLX is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Fs Managed Futures and Fs Real Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Real Asset and Fs Managed 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 Fs Managed Futures are associated (or correlated) with Fs Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Real Asset has no effect on the direction of Fs Managed i.e., Fs Managed and Fs Real go up and down completely randomly.

Pair Corralation between Fs Managed and Fs Real

Assuming the 90 days horizon Fs Managed Futures is expected to generate 0.74 times more return on investment than Fs Real. However, Fs Managed Futures is 1.36 times less risky than Fs Real. It trades about 0.03 of its potential returns per unit of risk. Fs Real Asset is currently generating about -0.13 per unit of risk. If you would invest  1,021  in Fs Managed Futures on February 2, 2024 and sell it today you would earn a total of  4.00  from holding Fs Managed Futures or generate 0.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Fs Managed Futures  vs.  Fs Real Asset

Fs Managed Futures

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fs Managed Futures are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Fs Managed may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Fs Real Asset

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fs Real Asset are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Fs Real is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fs Managed and Fs Real

The main advantage of trading using opposite Fs Managed and Fs Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Managed position performs unexpectedly, Fs Real 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 Real will offset losses from the drop in Fs Real's long position.

The idea behind Fs Managed Futures and Fs Real Asset pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.