Correlation Between Multi Asset and Us E

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

By analyzing existing cross correlation between Multi Asset Growth Strategy and Us E Equity, you can compare the effects of market volatilities on Multi Asset and Us E 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 Asset with a short position of Us E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Asset and Us E.

Diversification Opportunities for Multi Asset and Us E

0.99

Correlation Coefficient

Multi Asset  Us E

No risk reduction

The 3 months correlation between Multi and RSQAX is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Multi Asset Growth Strategy and Us E Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us E Equity and Multi Asset 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 Asset Growth Strategy are associated (or correlated) with Us E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us E Equity has no effect on the direction of Multi Asset i.e., Multi Asset and Us E go up and down completely randomly.

Pair Corralation between Multi Asset and Us E

Assuming the 90 days horizon Multi Asset is expected to generate 1.29 times less return on investment than Us E. But when comparing it to its historical volatility, Multi Asset Growth Strategy is 1.84 times less risky than Us E. It trades about 0.3 of its potential returns per unit of risk. Us E Equity is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  2,289  in Us E Equity on April 30, 2025 and sell it today you would earn a total of  212.00  from holding Us E Equity or generate 9.26% return on investment over 90 days.

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

Multi Asset Growth Strategy  vs.  Us E Equity

Multi Asset Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Asset Growth Strategy are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Multi Asset may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Us E Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Us E Equity are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Us E may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Multi Asset and Us E

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

The idea behind Multi Asset Growth Strategy and Us E Equity 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.