Correlation Between Global Multi-strategy and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Global Multi-strategy and Strategic Asset 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 Global Multi-strategy and Strategic Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Multi Strategy Fund and Strategic Asset Management, you can compare the effects of market volatilities on Global Multi-strategy and Strategic Asset 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 Global Multi-strategy with a short position of Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Multi-strategy and Strategic Asset.
Diversification Opportunities for Global Multi-strategy and Strategic Asset
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Strategic is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Global Multi Strategy Fund and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana and Global Multi-strategy 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 Global Multi Strategy Fund are associated (or correlated) with Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Global Multi-strategy i.e., Global Multi-strategy and Strategic Asset go up and down completely randomly.
Pair Corralation between Global Multi-strategy and Strategic Asset
Assuming the 90 days horizon Global Multi-strategy is expected to generate 1.79 times less return on investment than Strategic Asset. But when comparing it to its historical volatility, Global Multi Strategy Fund is 2.72 times less risky than Strategic Asset. It trades about 0.33 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,171 in Strategic Asset Management on May 31, 2025 and sell it today you would earn a total of 169.00 from holding Strategic Asset Management or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Global Multi Strategy Fund vs. Strategic Asset Management
Performance |
| Timeline |
| Global Multi Strategy |
| Strategic Asset Mana |
Global Multi-strategy and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Multi-strategy and Strategic Asset
The main advantage of trading using opposite Global Multi-strategy and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Multi-strategy position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| Global Multi-strategy vs. Calvert Global Energy | Global Multi-strategy vs. Oil Gas Ultrasector | Global Multi-strategy vs. Franklin Natural Resources | Global Multi-strategy vs. Blackrock All Cap Energy |
| Strategic Asset vs. Allianzgi Technology Fund | Strategic Asset vs. Nationwide Bailard Technology | Strategic Asset vs. Hennessy Technology Fund | Strategic Asset vs. Red Oak Technology |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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