Correlation Between Multi Manager and Guidepath(r) Managed
Can any of the company-specific risk be diversified away by investing in both Multi Manager and Guidepath(r) Managed 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 and Guidepath(r) Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Manager High Yield and Guidepath Managed Futures, you can compare the effects of market volatilities on Multi Manager and Guidepath(r) Managed 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 with a short position of Guidepath(r) Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Manager and Guidepath(r) Managed.
Diversification Opportunities for Multi Manager and Guidepath(r) Managed
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Multi and Guidepath(r) is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager High Yield and Guidepath Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Managed Futures and Multi Manager 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 High Yield are associated (or correlated) with Guidepath(r) Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Managed Futures has no effect on the direction of Multi Manager i.e., Multi Manager and Guidepath(r) Managed go up and down completely randomly.
Pair Corralation between Multi Manager and Guidepath(r) Managed
Assuming the 90 days horizon Multi Manager High Yield is expected to generate 0.25 times more return on investment than Guidepath(r) Managed. However, Multi Manager High Yield is 4.05 times less risky than Guidepath(r) Managed. It trades about 0.41 of its potential returns per unit of risk. Guidepath Managed Futures is currently generating about -0.05 per unit of risk. If you would invest 838.00 in Multi Manager High Yield on October 30, 2024 and sell it today you would earn a total of 10.00 from holding Multi Manager High Yield or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Manager High Yield vs. Guidepath Managed Futures
Performance |
| Timeline |
| Multi Manager High |
| Guidepath Managed Futures |
Multi Manager and Guidepath(r) Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Manager and Guidepath(r) Managed
The main advantage of trading using opposite Multi Manager and Guidepath(r) Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Manager position performs unexpectedly, Guidepath(r) Managed 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 Guidepath(r) Managed will offset losses from the drop in Guidepath(r) Managed's long position.| Multi Manager vs. Ms Global Fixed | Multi Manager vs. Investec Global Franchise | Multi Manager vs. Qs Global Equity | Multi Manager vs. Kinetics Global Fund |
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Check out your portfolio center.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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