Correlation Between Multi-asset Growth and Multi-asset Real

Can any of the company-specific risk be diversified away by investing in both Multi-asset Growth and Multi-asset 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-asset Growth and Multi-asset Real 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 Multi Asset Real Return, you can compare the effects of market volatilities on Multi-asset Growth and Multi-asset 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-asset Growth with a short position of Multi-asset Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi-asset Growth and Multi-asset Real.

Diversification Opportunities for Multi-asset Growth and Multi-asset Real

0.94

Correlation Coefficient

Multi-asset Growth  Multi-asset Real

Almost no diversification

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

Pair Corralation between Multi-asset Growth and Multi-asset Real

Assuming the 90 days horizon Multi-asset Growth is expected to generate 1.68 times less return on investment than Multi-asset Real. But when comparing it to its historical volatility, Multi Asset Growth Strategy is 3.32 times less risky than Multi-asset Real. It trades about 0.22 of its potential returns per unit of risk. Multi Asset Real Return is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,032  in Multi Asset Real Return on May 10, 2025 and sell it today you would earn a total of  169.00  from holding Multi Asset Real Return or generate 8.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.36%
Values	Daily Returns

Multi Asset Growth Strategy  vs.  Multi Asset Real Return

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 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Multi-asset Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Multi Asset Real

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Asset Real Return are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Multi-asset Real may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Multi-asset Growth and Multi-asset Real

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

The idea behind Multi Asset Growth Strategy and Multi Asset Real Return 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..