Correlation Between Investec Emerging and Fs Multi-strategy
Can any of the company-specific risk be diversified away by investing in both Investec Emerging 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 Investec Emerging 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 Investec Emerging Markets and Fs Multi Strategy Alt, you can compare the effects of market volatilities on Investec Emerging 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 Investec Emerging with a short position of Fs Multi-strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Fs Multi-strategy.
Diversification Opportunities for Investec Emerging and Fs Multi-strategy
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Investec and FSMMX is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets 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 Investec Emerging 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 Investec Emerging Markets 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 Investec Emerging i.e., Investec Emerging and Fs Multi-strategy go up and down completely randomly.
Pair Corralation between Investec Emerging and Fs Multi-strategy
Assuming the 90 days horizon Investec Emerging Markets is expected to generate 5.13 times more return on investment than Fs Multi-strategy. However, Investec Emerging is 5.13 times more volatile than Fs Multi Strategy Alt. It trades about 0.24 of its potential returns per unit of risk. Fs Multi Strategy Alt is currently generating about 0.42 per unit of risk. If you would invest 1,202 in Investec Emerging Markets on June 13, 2025 and sell it today you would earn a total of 135.00 from holding Investec Emerging Markets or generate 11.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Emerging Markets vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| Investec Emerging Markets |
| Fs Multi Strategy |
Investec Emerging and Fs Multi-strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Fs Multi-strategy
The main advantage of trading using opposite Investec Emerging and Fs Multi-strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging 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.| Investec Emerging vs. Investec Emerging Markets | Investec Emerging vs. Ninety One Global | Investec Emerging vs. Investec Global Franchise | Investec Emerging vs. Investec Global Franchise |
| Fs Multi-strategy vs. Gamco Natural Resources | Fs Multi-strategy vs. Icon Natural Resources | Fs Multi-strategy vs. Pimco Energy Tactical | Fs Multi-strategy vs. Calvert Global Energy |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |