Correlation Between Multi-asset Real and 17136MAA0

Can any of the company-specific risk be diversified away by investing in both Multi-asset Real and 17136MAA0 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 Multi-asset Real and 17136MAA0 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Multi Asset Real Return and CHD 23 15 DEC 31, you can compare the effects of market volatilities on Multi-asset Real and 17136MAA0 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 Multi-asset Real with a short position of 17136MAA0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi-asset Real and 17136MAA0.

Diversification Opportunities for Multi-asset Real and 17136MAA0

-0.49

Correlation Coefficient

Multi-asset Real  17136MAA0

Very good diversification

The 3 months correlation between Multi-asset and 17136MAA0 is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Multi Asset Real Return and CHD 23 15 DEC 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHD 23 15 and Multi-asset 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 Multi Asset Real Return are associated (or correlated) with 17136MAA0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHD 23 15 has no effect on the direction of Multi-asset Real i.e., Multi-asset Real and 17136MAA0 go up and down completely randomly.

Pair Corralation between Multi-asset Real and 17136MAA0

Assuming the 90 days horizon Multi Asset Real Return is expected to under-perform the 17136MAA0. In addition to that, Multi-asset Real is 1.72 times more volatile than CHD 23 15 DEC 31. It trades about -0.06 of its total potential returns per unit of risk. CHD 23 15 DEC 31 is currently generating about 0.08 per unit of volatility. If you would invest  8,524  in CHD 23 15 DEC 31 on October 12, 2024 and sell it today you would earn a total of  104.00  from holding CHD 23 15 DEC 31 or generate 1.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.0%
Values	Daily Returns

Multi Asset Real Return  vs.  CHD 23 15 DEC 31

Multi Asset Real

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Asset Real Return are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Multi-asset Real may actually be approaching a critical reversion point that can send shares even higher in February 2025.

CHD 23 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CHD 23 15 DEC 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 17136MAA0 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Multi-asset Real and 17136MAA0

The main advantage of trading using opposite Multi-asset Real and 17136MAA0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi-asset Real position performs unexpectedly, 17136MAA0 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 17136MAA0 will offset losses from the drop in 17136MAA0's long position.

The idea behind Multi Asset Real Return and CHD 23 15 DEC 31 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.