Correlation Between Tfa Alphagen and Fs Managed

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

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

Diversification Opportunities for Tfa Alphagen and Fs Managed

-0.46

Correlation Coefficient

Tfa Alphagen  Fs Managed

Very good diversification

The 3 months correlation between Tfa and FMFFX is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth 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 Tfa Alphagen 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 Tfa Alphagen Growth 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 Tfa Alphagen i.e., Tfa Alphagen and Fs Managed go up and down completely randomly.

Pair Corralation between Tfa Alphagen and Fs Managed

Assuming the 90 days horizon Tfa Alphagen Growth is expected to generate 1.08 times more return on investment than Fs Managed. However, Tfa Alphagen is 1.08 times more volatile than Fs Managed Futures. It trades about 0.09 of its potential returns per unit of risk. Fs Managed Futures is currently generating about -0.01 per unit of risk. If you would invest  799.00  in Tfa Alphagen Growth on September 12, 2024 and sell it today you would earn a total of  333.00  from holding Tfa Alphagen Growth or generate 41.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	92.91%
Values	Daily Returns

Tfa Alphagen Growth  vs.  Fs Managed Futures

Tfa Alphagen Growth

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tfa Alphagen Growth are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Tfa Alphagen may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Fs Managed Futures

Risk-Adjusted Performance

0 of 100

Good

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 Tfa Alphagen and Fs Managed

The main advantage of trading using opposite Tfa Alphagen and Fs Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tfa Alphagen 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 Tfa Alphagen Growth 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.