Correlation Between Firsthand Alternative and Vanguard Multi
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Vanguard Multi 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 Alternative and Vanguard Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Vanguard Multi Sector Income, you can compare the effects of market volatilities on Firsthand Alternative and Vanguard Multi 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 Alternative with a short position of Vanguard Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Vanguard Multi.
Diversification Opportunities for Firsthand Alternative and Vanguard Multi
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Firsthand and Vanguard is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Vanguard Multi Sector Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Multi Sector and Firsthand Alternative 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 Alternative Energy are associated (or correlated) with Vanguard Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Multi Sector has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Vanguard Multi go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Vanguard Multi
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 7.3 times more return on investment than Vanguard Multi. However, Firsthand Alternative is 7.3 times more volatile than Vanguard Multi Sector Income. It trades about 0.17 of its potential returns per unit of risk. Vanguard Multi Sector Income is currently generating about 0.2 per unit of risk. If you would invest 896.00 in Firsthand Alternative Energy on March 17, 2025 and sell it today you would earn a total of 42.00 from holding Firsthand Alternative Energy or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Vanguard Multi Sector Income
Performance |
| Timeline |
| Firsthand Alternative |
| Vanguard Multi Sector |
Firsthand Alternative and Vanguard Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Vanguard Multi
The main advantage of trading using opposite Firsthand Alternative and Vanguard Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Vanguard Multi 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 Vanguard Multi will offset losses from the drop in Vanguard Multi's long position.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Vanguard Multi vs. Columbia Global Technology | Vanguard Multi vs. Putnam Global Technology | Vanguard Multi vs. Allianzgi Technology Fund | Vanguard Multi vs. Goldman Sachs Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |