Correlation Between Pace Global and Fs Multi-strategy
Can any of the company-specific risk be diversified away by investing in both Pace Global 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 Pace Global 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 Pace Global Real and Fs Multi Strategy Alt, you can compare the effects of market volatilities on Pace Global 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 Pace Global with a short position of Fs Multi-strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace Global and Fs Multi-strategy.
Diversification Opportunities for Pace Global and Fs Multi-strategy
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pace and FSMMX is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Pace Global Real 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 Pace Global 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 Pace Global Real 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 Pace Global i.e., Pace Global and Fs Multi-strategy go up and down completely randomly.
Pair Corralation between Pace Global and Fs Multi-strategy
Assuming the 90 days horizon Pace Global is expected to generate 1.12 times less return on investment than Fs Multi-strategy. In addition to that, Pace Global is 6.36 times more volatile than Fs Multi Strategy Alt. It trades about 0.04 of its total potential returns per unit of risk. Fs Multi Strategy Alt is currently generating about 0.29 per unit of volatility. If you would invest 1,118 in Fs Multi Strategy Alt on April 29, 2025 and sell it today you would earn a total of 6.00 from holding Fs Multi Strategy Alt or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace Global Real vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| Pace Global Real |
| Fs Multi Strategy |
Pace Global and Fs Multi-strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace Global and Fs Multi-strategy
The main advantage of trading using opposite Pace Global and Fs Multi-strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace Global 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.| Pace Global vs. Pace International Emerging | Pace Global vs. Balanced Strategy Fund | Pace Global vs. Nasdaq 100 2x Strategy | Pace Global vs. Sa Emerging Markets |
| Fs Multi-strategy vs. Gmo Emerging Markets | Fs Multi-strategy vs. Transamerica Emerging Markets | Fs Multi-strategy vs. Investec Emerging Markets | Fs Multi-strategy vs. Blackrock Emerging Markets |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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