Correlation Between Multi-manager Directional and Multi-strategy Income

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

By analyzing existing cross correlation between Multi Manager Directional Alternative and Multi Strategy Income Fund, you can compare the effects of market volatilities on Multi-manager Directional and Multi-strategy Income 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-manager Directional with a short position of Multi-strategy Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi-manager Directional and Multi-strategy Income.

Diversification Opportunities for Multi-manager Directional and Multi-strategy Income

0.0

Correlation Coefficient

Multi-manager Directional  Multi-strategy Income

Pay attention - limited upside

The 3 months correlation between Multi-manager and Multi-strategy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager Directional Alte and Multi Strategy Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Strategy Income and Multi-manager Directional 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 Manager Directional Alternative are associated (or correlated) with Multi-strategy Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Strategy Income has no effect on the direction of Multi-manager Directional i.e., Multi-manager Directional and Multi-strategy Income go up and down completely randomly.

Pair Corralation between Multi-manager Directional and Multi-strategy Income

If you would invest  751.00  in Multi Manager Directional Alternative on May 28, 2025 and sell it today you would earn a total of  32.00  from holding Multi Manager Directional Alternative or generate 4.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Multi Manager Directional Alte  vs.  Multi Strategy Income Fund

Multi-manager Directional

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Manager Directional Alternative are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Multi-manager Directional is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Multi Strategy Income

Risk-Adjusted Performance

Solid

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

Pair Trading with Multi-manager Directional and Multi-strategy Income

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

The idea behind Multi Manager Directional Alternative and Multi Strategy Income Fund 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.