Correlation Between Shenkman Short and Multi-manager High
Can any of the company-specific risk be diversified away by investing in both Shenkman Short and Multi-manager High 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 Shenkman Short and Multi-manager High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shenkman Short Duration and Multi Manager High Yield, you can compare the effects of market volatilities on Shenkman Short and Multi-manager High 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 Shenkman Short with a short position of Multi-manager High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenkman Short and Multi-manager High.
Diversification Opportunities for Shenkman Short and Multi-manager High
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenkman and Multi-manager is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shenkman Short Duration 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 Shenkman Short 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 Shenkman Short Duration are associated (or correlated) with Multi-manager High. 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 Shenkman Short i.e., Shenkman Short and Multi-manager High go up and down completely randomly.
Pair Corralation between Shenkman Short and Multi-manager High
Assuming the 90 days horizon Shenkman Short is expected to generate 1.61 times less return on investment than Multi-manager High. But when comparing it to its historical volatility, Shenkman Short Duration is 1.64 times less risky than Multi-manager High. It trades about 0.3 of its potential returns per unit of risk. Multi Manager High Yield is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 828.00 in Multi Manager High Yield on June 1, 2025 and sell it today you would earn a total of 22.00 from holding Multi Manager High Yield or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenkman Short Duration vs. Multi Manager High Yield
Performance |
| Timeline |
| Shenkman Short Duration |
| Multi Manager High |
Shenkman Short and Multi-manager High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenkman Short and Multi-manager High
The main advantage of trading using opposite Shenkman Short and Multi-manager High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenkman Short position performs unexpectedly, Multi-manager High 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 High will offset losses from the drop in Multi-manager High's long position.| Shenkman Short vs. Shenkman Short Duration | Shenkman Short vs. Shenkman Short Duration | Shenkman Short vs. Shenkman Floating Rate |
| Multi-manager High vs. Fidelity Advisor Gold | Multi-manager High vs. Vy Goldman Sachs | Multi-manager High vs. Goldman Sachs Flexible | Multi-manager High vs. World Precious Minerals |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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