Correlation Between Multi-manager Global and Northern Global
Can any of the company-specific risk be diversified away by investing in both Multi-manager Global and Northern Global 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 Global and Northern Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Manager Global Real and Northern Global Real, you can compare the effects of market volatilities on Multi-manager Global and Northern Global 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 Global with a short position of Northern Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi-manager Global and Northern Global.
Diversification Opportunities for Multi-manager Global and Northern Global
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Multi-manager and Northern is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager Global Real and Northern Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Global Real and Multi-manager Global 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 Global Real are associated (or correlated) with Northern Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Global Real has no effect on the direction of Multi-manager Global i.e., Multi-manager Global and Northern Global go up and down completely randomly.
Pair Corralation between Multi-manager Global and Northern Global
Assuming the 90 days horizon Multi-manager Global is expected to generate 1.15 times less return on investment than Northern Global. In addition to that, Multi-manager Global is 1.13 times more volatile than Northern Global Real. It trades about 0.12 of its total potential returns per unit of risk. Northern Global Real is currently generating about 0.15 per unit of volatility. If you would invest 957.00 in Northern Global Real on April 29, 2025 and sell it today you would earn a total of 57.00 from holding Northern Global Real or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Manager Global Real vs. Northern Global Real
Performance |
| Timeline |
| Multi Manager Global |
Risk-Adjusted Performance
OK
Weak | Strong |
| Northern Global Real |
Multi-manager Global and Northern Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi-manager Global and Northern Global
The main advantage of trading using opposite Multi-manager Global and Northern Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi-manager Global position performs unexpectedly, Northern Global 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 Northern Global will offset losses from the drop in Northern Global's long position.| Multi-manager Global vs. Ep Emerging Markets | Multi-manager Global vs. Dws Emerging Markets | Multi-manager Global vs. Fidelity New Markets | Multi-manager Global vs. Ab All Market |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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