Correlation Between Global Real and Fs Multi-strategy
Can any of the company-specific risk be diversified away by investing in both Global Real 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 Global Real 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 Global Real Estate and Fs Multi Strategy Alt, you can compare the effects of market volatilities on Global Real 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 Global Real with a short position of Fs Multi-strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Real and Fs Multi-strategy.
Diversification Opportunities for Global Real and Fs Multi-strategy
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and FSMSX is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Global Real Estate 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 Global Real 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 Real Estate 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 Global Real i.e., Global Real and Fs Multi-strategy go up and down completely randomly.
Pair Corralation between Global Real and Fs Multi-strategy
Assuming the 90 days horizon Global Real is expected to generate 1.03 times less return on investment than Fs Multi-strategy. In addition to that, Global Real is 4.39 times more volatile than Fs Multi Strategy Alt. It trades about 0.06 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 May 30, 2025 and sell it today you would earn a total of 31.00 from holding Fs Multi Strategy Alt or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Real Estate vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| Global Real Estate |
| Fs Multi Strategy |
Global Real and Fs Multi-strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Real and Fs Multi-strategy
The main advantage of trading using opposite Global Real and Fs Multi-strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Real 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.| Global Real vs. Federated Government Income | Global Real vs. Pace Municipal Fixed | Global Real vs. Dunham Porategovernment Bond | Global Real vs. Prudential California Muni |
| Fs Multi-strategy vs. Rbc Funds Trust | Fs Multi-strategy vs. Morningstar Defensive Bond | Fs Multi-strategy vs. T Rowe Price | Fs Multi-strategy vs. Multisector Bond Sma |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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