Correlation Between Multimanager Lifestyle and Knights Of

Can any of the company-specific risk be diversified away by investing in both Multimanager Lifestyle and Knights Of 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 Multimanager Lifestyle and Knights Of into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Multimanager Lifestyle Moderate and Knights Of Umbus, you can compare the effects of market volatilities on Multimanager Lifestyle and Knights Of 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 Multimanager Lifestyle with a short position of Knights Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multimanager Lifestyle and Knights Of.

Diversification Opportunities for Multimanager Lifestyle and Knights Of

0.32

Correlation Coefficient

Multimanager Lifestyle  Knights Of

Weak diversification

The 3 months correlation between Multimanager and Knights is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Multimanager Lifestyle Moderat and Knights Of Umbus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knights Of Umbus and Multimanager Lifestyle 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 Multimanager Lifestyle Moderate are associated (or correlated) with Knights Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knights Of Umbus has no effect on the direction of Multimanager Lifestyle i.e., Multimanager Lifestyle and Knights Of go up and down completely randomly.

Pair Corralation between Multimanager Lifestyle and Knights Of

Assuming the 90 days horizon Multimanager Lifestyle is expected to generate 1.4 times less return on investment than Knights Of. In addition to that, Multimanager Lifestyle is 3.89 times more volatile than Knights Of Umbus. It trades about 0.05 of its total potential returns per unit of risk. Knights Of Umbus is currently generating about 0.28 per unit of volatility. If you would invest  962.00  in Knights Of Umbus on December 23, 2024 and sell it today you would earn a total of  16.00  from holding Knights Of Umbus or generate 1.66% return on investment over 90 days.

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

Multimanager Lifestyle Moderat  vs.  Knights Of Umbus

Multimanager Lifestyle

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Multimanager Lifestyle Moderate are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Multimanager Lifestyle is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Knights Of Umbus

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Knights Of Umbus are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Knights Of is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Multimanager Lifestyle and Knights Of

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

The idea behind Multimanager Lifestyle Moderate and Knights Of Umbus 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 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.