Correlation Between Fs Multi-strategy and Ninety One

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

By analyzing existing cross correlation between Fs Multi Strategy Alt and Ninety One International, you can compare the effects of market volatilities on Fs Multi-strategy and Ninety One 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 Fs Multi-strategy with a short position of Ninety One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Multi-strategy and Ninety One.

Diversification Opportunities for Fs Multi-strategy and Ninety One

0.39

Correlation Coefficient

Fs Multi-strategy  Ninety One

Weak diversification

The 3 months correlation between FSMMX and Ninety is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Fs Multi Strategy Alt and Ninety One International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ninety One International and Fs Multi-strategy 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 Fs Multi Strategy Alt are associated (or correlated) with Ninety One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ninety One International has no effect on the direction of Fs Multi-strategy i.e., Fs Multi-strategy and Ninety One go up and down completely randomly.

Pair Corralation between Fs Multi-strategy and Ninety One

Assuming the 90 days horizon Fs Multi Strategy Alt is expected to generate 0.25 times more return on investment than Ninety One. However, Fs Multi Strategy Alt is 4.04 times less risky than Ninety One. It trades about 0.32 of its potential returns per unit of risk. Ninety One International is currently generating about 0.01 per unit of risk. If you would invest  1,099  in Fs Multi Strategy Alt on May 10, 2025 and sell it today you would earn a total of  36.00  from holding Fs Multi Strategy Alt or generate 3.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Fs Multi Strategy Alt  vs.  Ninety One International

Fs Multi Strategy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fs Multi Strategy Alt are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Fs Multi-strategy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ninety One International

Risk-Adjusted Performance

Weakest

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

Pair Trading with Fs Multi-strategy and Ninety One

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

The idea behind Fs Multi Strategy Alt and Ninety One International 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.