Correlation Between Intermediate Government and Api Multi

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

By analyzing existing cross correlation between Intermediate Government Bond and Api Multi Asset Income, you can compare the effects of market volatilities on Intermediate Government and Api Multi 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 Intermediate Government with a short position of Api Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Government and Api Multi.

Diversification Opportunities for Intermediate Government and Api Multi

0.94

Correlation Coefficient

Intermediate Government  Api Multi

Almost no diversification

The 3 months correlation between Intermediate and Api is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Government Bond and Api Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Api Multi Asset and Intermediate Government 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 Intermediate Government Bond are associated (or correlated) with Api Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Api Multi Asset has no effect on the direction of Intermediate Government i.e., Intermediate Government and Api Multi go up and down completely randomly.

Pair Corralation between Intermediate Government and Api Multi

Assuming the 90 days horizon Intermediate Government is expected to generate 1.71 times less return on investment than Api Multi. But when comparing it to its historical volatility, Intermediate Government Bond is 1.31 times less risky than Api Multi. It trades about 0.16 of its potential returns per unit of risk. Api Multi Asset Income is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  778.00  in Api Multi Asset Income on May 19, 2025 and sell it today you would earn a total of  17.00  from holding Api Multi Asset Income or generate 2.19% return on investment over 90 days.

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

Intermediate Government Bond  vs.  Api Multi Asset Income

Intermediate Government

Risk-Adjusted Performance

Good

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

Api Multi Asset

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Api Multi Asset Income are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Api Multi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intermediate Government and Api Multi

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

The idea behind Intermediate Government Bond and Api Multi Asset Income 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.