Correlation Between Sentinel Small and Fs Managed

Can any of the company-specific risk be diversified away by investing in both Sentinel Small and Fs Managed 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 Sentinel Small and Fs Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sentinel Small Pany and Fs Managed Futures, you can compare the effects of market volatilities on Sentinel Small and Fs Managed 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 Sentinel Small with a short position of Fs Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentinel Small and Fs Managed.

Diversification Opportunities for Sentinel Small and Fs Managed

0.0

Correlation Coefficient

Sentinel Small  Fs Managed

Pay attention - limited upside

The 3 months correlation between Sentinel and FMFFX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sentinel Small Pany and Fs Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Managed Futures and Sentinel Small 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 Sentinel Small Pany are associated (or correlated) with Fs Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Managed Futures has no effect on the direction of Sentinel Small i.e., Sentinel Small and Fs Managed go up and down completely randomly.

Pair Corralation between Sentinel Small and Fs Managed

If you would invest (100.00) in Fs Managed Futures on December 1, 2024 and sell it today you would earn a total of  100.00  from holding Fs Managed Futures or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sentinel Small Pany  vs.  Fs Managed Futures

Sentinel Small Pany

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sentinel Small Pany has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Fs Managed Futures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fs Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Fs Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sentinel Small and Fs Managed

The main advantage of trading using opposite Sentinel Small and Fs Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentinel Small position performs unexpectedly, Fs Managed 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 Managed will offset losses from the drop in Fs Managed's long position.

The idea behind Sentinel Small Pany and Fs Managed Futures pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.