Correlation Between Gold Portfolio and Multi-manager High

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

By analyzing existing cross correlation between Gold Portfolio Fidelity and Multi Manager High Yield, you can compare the effects of market volatilities on Gold Portfolio and Multi-manager High 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 Gold Portfolio with a short position of Multi-manager High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Portfolio and Multi-manager High.

Diversification Opportunities for Gold Portfolio and Multi-manager High

0.85

Correlation Coefficient

Gold Portfolio  Multi-manager High

Very poor diversification

The 3 months correlation between Gold and Multi-manager is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Gold Portfolio Fidelity and Multi Manager High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Manager High and Gold Portfolio 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 Gold Portfolio Fidelity are associated (or correlated) with Multi-manager High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Manager High has no effect on the direction of Gold Portfolio i.e., Gold Portfolio and Multi-manager High go up and down completely randomly.

Pair Corralation between Gold Portfolio and Multi-manager High

Assuming the 90 days horizon Gold Portfolio Fidelity is expected to generate 13.37 times more return on investment than Multi-manager High. However, Gold Portfolio is 13.37 times more volatile than Multi Manager High Yield. It trades about 0.2 of its potential returns per unit of risk. Multi Manager High Yield is currently generating about 0.11 per unit of risk. If you would invest  3,617  in Gold Portfolio Fidelity on July 26, 2025 and sell it today you would earn a total of  1,125  from holding Gold Portfolio Fidelity or generate 31.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Gold Portfolio Fidelity  vs.  Multi Manager High Yield

Gold Portfolio Fidelity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gold Portfolio Fidelity are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gold Portfolio showed solid returns over the last few months and may actually be approaching a breakup point.

Multi Manager High

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Manager High Yield are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Multi-manager High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gold Portfolio and Multi-manager High

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

The idea behind Gold Portfolio Fidelity and Multi Manager High Yield 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.