Correlation Between Mh Elite and Multimanager Lifestyle

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

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

Diversification Opportunities for Mh Elite and Multimanager Lifestyle

0.98

Correlation Coefficient

Mh Elite  Multimanager Lifestyle

Almost no diversification

The 3 months correlation between MHEFX and Multimanager is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Mh Elite Fund and Multimanager Lifestyle Aggress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle and Mh Elite 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 Mh Elite Fund are associated (or correlated) with Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Mh Elite i.e., Mh Elite and Multimanager Lifestyle go up and down completely randomly.

Pair Corralation between Mh Elite and Multimanager Lifestyle

Assuming the 90 days horizon Mh Elite Fund is expected to generate 1.29 times more return on investment than Multimanager Lifestyle. However, Mh Elite is 1.29 times more volatile than Multimanager Lifestyle Aggressive. It trades about 0.26 of its potential returns per unit of risk. Multimanager Lifestyle Aggressive is currently generating about 0.25 per unit of risk. If you would invest  805.00  in Mh Elite Fund on May 2, 2025 and sell it today you would earn a total of  103.00  from holding Mh Elite Fund or generate 12.8% return on investment over 90 days.

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

Mh Elite Fund  vs.  Multimanager Lifestyle Aggress

Mh Elite Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mh Elite Fund are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Mh Elite may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Multimanager Lifestyle

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Multimanager Lifestyle Aggressive are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Multimanager Lifestyle may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Mh Elite and Multimanager Lifestyle

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

The idea behind Mh Elite Fund and Multimanager Lifestyle Aggressive 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.