Correlation Between Highland Longshort and Multi Manager
Can any of the company-specific risk be diversified away by investing in both Highland Longshort and Multi Manager 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 Highland Longshort and Multi Manager into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highland Longshort Healthcare and Multi Manager High Yield, you can compare the effects of market volatilities on Highland Longshort and Multi Manager 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 Highland Longshort with a short position of Multi Manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Longshort and Multi Manager.
Diversification Opportunities for Highland Longshort and Multi Manager
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Highland and Multi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare and Multi Manager High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Manager High and Highland Longshort 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 Highland Longshort Healthcare are associated (or correlated) with Multi Manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Manager High has no effect on the direction of Highland Longshort i.e., Highland Longshort and Multi Manager go up and down completely randomly.
Pair Corralation between Highland Longshort and Multi Manager
Assuming the 90 days horizon Highland Longshort Healthcare is expected to generate 1.3 times more return on investment than Multi Manager. However, Highland Longshort is 1.3 times more volatile than Multi Manager High Yield. It trades about 0.29 of its potential returns per unit of risk. Multi Manager High Yield is currently generating about 0.31 per unit of risk. If you would invest 1,642 in Highland Longshort Healthcare on May 1, 2025 and sell it today you would earn a total of 70.00 from holding Highland Longshort Healthcare or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Highland Longshort Healthcare vs. Multi Manager High Yield
Performance |
| Timeline |
| Highland Longshort |
| Multi Manager High |
Highland Longshort and Multi Manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highland Longshort and Multi Manager
The main advantage of trading using opposite Highland Longshort and Multi Manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Longshort position performs unexpectedly, Multi Manager 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 Manager will offset losses from the drop in Multi Manager's long position.| Highland Longshort vs. Auer Growth Fund | Highland Longshort vs. Praxis Genesis Growth | Highland Longshort vs. Chase Growth Fund | Highland Longshort vs. Eagle Growth Income |
| Multi Manager vs. Ashmore Emerging Markets | Multi Manager vs. Ab Bond Inflation | Multi Manager vs. Bbh Intermediate Municipal | Multi Manager vs. Artisan High Income |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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