Correlation Between Channing Intrinsic and Fs Multi-strategy
Can any of the company-specific risk be diversified away by investing in both Channing Intrinsic and Fs Multi-strategy 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 Channing Intrinsic and Fs Multi-strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Channing Intrinsic Value and Fs Multi Strategy Alt, you can compare the effects of market volatilities on Channing Intrinsic and Fs Multi-strategy 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 Channing Intrinsic with a short position of Fs Multi-strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Channing Intrinsic and Fs Multi-strategy.
Diversification Opportunities for Channing Intrinsic and Fs Multi-strategy
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Channing and FSMSX is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Channing Intrinsic Value and Fs Multi Strategy Alt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Multi Strategy and Channing Intrinsic 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 Channing Intrinsic Value are associated (or correlated) with Fs Multi-strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Multi Strategy has no effect on the direction of Channing Intrinsic i.e., Channing Intrinsic and Fs Multi-strategy go up and down completely randomly.
Pair Corralation between Channing Intrinsic and Fs Multi-strategy
Assuming the 90 days horizon Channing Intrinsic Value is expected to generate 7.31 times more return on investment than Fs Multi-strategy. However, Channing Intrinsic is 7.31 times more volatile than Fs Multi Strategy Alt. It trades about 0.19 of its potential returns per unit of risk. Fs Multi Strategy Alt is currently generating about 0.32 per unit of risk. If you would invest 974.00 in Channing Intrinsic Value on May 23, 2025 and sell it today you would earn a total of 135.00 from holding Channing Intrinsic Value or generate 13.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Channing Intrinsic Value vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| Channing Intrinsic Value |
| Fs Multi Strategy |
Channing Intrinsic and Fs Multi-strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Channing Intrinsic and Fs Multi-strategy
The main advantage of trading using opposite Channing Intrinsic and Fs Multi-strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Channing Intrinsic position performs unexpectedly, Fs Multi-strategy 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 Multi-strategy will offset losses from the drop in Fs Multi-strategy's long position.| Channing Intrinsic vs. Us Government Securities | Channing Intrinsic vs. Aig Government Money | Channing Intrinsic vs. Short Term Government Fund | Channing Intrinsic vs. Us Government Securities |
| Fs Multi-strategy vs. Delaware Limited Term Diversified | Fs Multi-strategy vs. Allianzgi Diversified Income | Fs Multi-strategy vs. Lord Abbett Diversified | Fs Multi-strategy vs. Stone Ridge Diversified |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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