Correlation Between Global Multi and Firsthand Alternative
Can any of the company-specific risk be diversified away by investing in both Global Multi and Firsthand Alternative 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 Global Multi and Firsthand Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Multi Strategy Fund and Firsthand Alternative Energy, you can compare the effects of market volatilities on Global Multi and Firsthand Alternative 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 Global Multi with a short position of Firsthand Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Multi and Firsthand Alternative.
Diversification Opportunities for Global Multi and Firsthand Alternative
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Firsthand is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Global Multi Strategy Fund and Firsthand Alternative Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firsthand Alternative and Global Multi 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 Global Multi Strategy Fund are associated (or correlated) with Firsthand Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firsthand Alternative has no effect on the direction of Global Multi i.e., Global Multi and Firsthand Alternative go up and down completely randomly.
Pair Corralation between Global Multi and Firsthand Alternative
Assuming the 90 days horizon Global Multi is expected to generate 6.93 times less return on investment than Firsthand Alternative. But when comparing it to its historical volatility, Global Multi Strategy Fund is 7.66 times less risky than Firsthand Alternative. It trades about 0.39 of its potential returns per unit of risk. Firsthand Alternative Energy is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 797.00 in Firsthand Alternative Energy on May 1, 2025 and sell it today you would earn a total of 277.00 from holding Firsthand Alternative Energy or generate 34.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Multi Strategy Fund vs. Firsthand Alternative Energy
Performance |
| Timeline |
| Global Multi Strategy |
| Firsthand Alternative |
Global Multi and Firsthand Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Multi and Firsthand Alternative
The main advantage of trading using opposite Global Multi and Firsthand Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Multi position performs unexpectedly, Firsthand Alternative 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 Firsthand Alternative will offset losses from the drop in Firsthand Alternative's long position.| Global Multi vs. Flkypx | Global Multi vs. Ips Strategic Capital | Global Multi vs. Ab Value Fund | Global Multi vs. Abr 7525 Volatility |
| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |