Correlation Between Abbey Capital and Fs Managed
Can any of the company-specific risk be diversified away by investing in both Abbey Capital 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 Abbey Capital and Fs Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abbey Capital Futures and Fs Managed Futures, you can compare the effects of market volatilities on Abbey Capital 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 Abbey Capital with a short position of Fs Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abbey Capital and Fs Managed.
Diversification Opportunities for Abbey Capital and Fs Managed
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Abbey and FMFFX is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Abbey Capital Futures 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 Abbey Capital 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 Abbey Capital Futures 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 Abbey Capital i.e., Abbey Capital and Fs Managed go up and down completely randomly.
Pair Corralation between Abbey Capital and Fs Managed
Assuming the 90 days horizon Abbey Capital Futures is expected to generate 1.03 times more return on investment than Fs Managed. However, Abbey Capital is 1.03 times more volatile than Fs Managed Futures. It trades about 0.14 of its potential returns per unit of risk. Fs Managed Futures is currently generating about 0.14 per unit of risk. If you would invest 1,169 in Abbey Capital Futures on February 16, 2024 and sell it today you would earn a total of 35.00 from holding Abbey Capital Futures or generate 2.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Abbey Capital Futures vs. Fs Managed Futures
Performance |
Timeline |
Abbey Capital Futures |
Fs Managed Futures |
Abbey Capital and Fs Managed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Abbey Capital and Fs Managed
The main advantage of trading using opposite Abbey Capital and Fs Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abbey Capital 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.Abbey Capital vs. Aqr Managed Futures | Abbey Capital vs. American Beacon Ahl | Abbey Capital vs. Abbey Capital Futures | Abbey Capital vs. Asg Managed Futures |
Fs Managed vs. Aqr Managed Futures | Fs Managed vs. American Beacon Ahl | Fs Managed vs. Abbey Capital Futures | Fs Managed vs. Abbey Capital Futures |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |