Correlation Between Multi-asset Real and 21036PBL1

Can any of the company-specific risk be diversified away by investing in both Multi-asset Real and 21036PBL1 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 21036PBL1 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 STZ 475 09 MAY 32, you can compare the effects of market volatilities on Multi-asset Real and 21036PBL1 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 21036PBL1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi-asset Real and 21036PBL1.

Diversification Opportunities for Multi-asset Real and 21036PBL1

-0.3

Correlation Coefficient

Multi-asset Real  21036PBL1

Very good diversification

The 3 months correlation between Multi-asset and 21036PBL1 is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Multi Asset Real Return and STZ 475 09 MAY 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STZ 475 09 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 21036PBL1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STZ 475 09 has no effect on the direction of Multi-asset Real i.e., Multi-asset Real and 21036PBL1 go up and down completely randomly.

Pair Corralation between Multi-asset Real and 21036PBL1

Assuming the 90 days horizon Multi Asset Real Return is expected to under-perform the 21036PBL1. In addition to that, Multi-asset Real is 1.66 times more volatile than STZ 475 09 MAY 32. It trades about -0.3 of its total potential returns per unit of risk. STZ 475 09 MAY 32 is currently generating about -0.05 per unit of volatility. If you would invest  9,863  in STZ 475 09 MAY 32 on October 6, 2024 and sell it today you would lose (90.00) from holding STZ 475 09 MAY 32 or give up 0.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Multi Asset Real Return  vs.  STZ 475 09 MAY 32

Multi Asset Real

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Asset Real Return are ranked lower than 5 (%) 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.

STZ 475 09

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days STZ 475 09 MAY 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 21036PBL1 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Multi-asset Real and 21036PBL1

The main advantage of trading using opposite Multi-asset Real and 21036PBL1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi-asset Real position performs unexpectedly, 21036PBL1 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 21036PBL1 will offset losses from the drop in 21036PBL1's long position.

The idea behind Multi Asset Real Return and STZ 475 09 MAY 32 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.