Correlation Between Multi-manager Global and Short Real

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

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

Diversification Opportunities for Multi-manager Global and Short Real

-0.74

Correlation Coefficient

Multi-manager Global  Short Real

Pay attention - limited upside

The 3 months correlation between Multi-manager and Short is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager Global Real and Short Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Real Estate and Multi-manager Global 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 Global Real are associated (or correlated) with Short Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Real Estate has no effect on the direction of Multi-manager Global i.e., Multi-manager Global and Short Real go up and down completely randomly.

Pair Corralation between Multi-manager Global and Short Real

Assuming the 90 days horizon Multi Manager Global Real is expected to generate 0.83 times more return on investment than Short Real. However, Multi Manager Global Real is 1.2 times less risky than Short Real. It trades about 0.06 of its potential returns per unit of risk. Short Real Estate is currently generating about -0.03 per unit of risk. If you would invest  1,026  in Multi Manager Global Real on May 21, 2025 and sell it today you would earn a total of  27.00  from holding Multi Manager Global Real or generate 2.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Multi Manager Global Real  vs.  Short Real Estate

Multi Manager Global

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Manager Global Real are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Multi-manager Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Short Real Estate

Risk-Adjusted Performance

Weakest

Over the last 90 days Short Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Short Real 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 Global and Short Real

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

The idea behind Multi Manager Global Real and Short Real Estate 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.