Correlation Between Balanced Fund and Multi-asset Income
Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Multi-asset Income 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 Balanced Fund and Multi-asset Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Investor and Multi Asset Income Fund, you can compare the effects of market volatilities on Balanced Fund and Multi-asset Income 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 Balanced Fund with a short position of Multi-asset Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Multi-asset Income.
Diversification Opportunities for Balanced Fund and Multi-asset Income
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Balanced and Multi-asset is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Investor and Multi Asset Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Asset Income and Balanced Fund 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 Balanced Fund Investor are associated (or correlated) with Multi-asset Income. 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 Income has no effect on the direction of Balanced Fund i.e., Balanced Fund and Multi-asset Income go up and down completely randomly.
Pair Corralation between Balanced Fund and Multi-asset Income
If you would invest 1,956 in Balanced Fund Investor on September 3, 2024 and sell it today you would earn a total of 72.00 from holding Balanced Fund Investor or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Balanced Fund Investor vs. Multi Asset Income Fund
Performance |
| Timeline |
| Balanced Fund Investor |
| Multi Asset Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Balanced Fund and Multi-asset Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Multi-asset Income
The main advantage of trading using opposite Balanced Fund and Multi-asset Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Multi-asset Income 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 Income will offset losses from the drop in Multi-asset Income's long position.| Balanced Fund vs. Select Fund Investor | Balanced Fund vs. Heritage Fund Investor | Balanced Fund vs. Value Fund Investor | Balanced Fund vs. Growth Fund Investor |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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