Correlation Between Balanced Fund and Multi-asset Growth

Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Multi-asset Growth 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 Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Balanced Fund Retail and Multi Asset Growth Strategy, you can compare the effects of market volatilities on Balanced Fund and Multi-asset Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Multi-asset Growth.

Diversification Opportunities for Balanced Fund and Multi-asset Growth

0.0

Correlation Coefficient

Balanced Fund  Multi-asset Growth

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 Retail and Multi Asset Growth Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Asset Growth 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 Retail are associated (or correlated) with Multi-asset Growth. 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 Growth has no effect on the direction of Balanced Fund i.e., Balanced Fund and Multi-asset Growth go up and down completely randomly.

Pair Corralation between Balanced Fund and Multi-asset Growth

If you would invest  1,327  in Balanced Fund Retail on August 26, 2025 and sell it today you would earn a total of  40.00  from holding Balanced Fund Retail or generate 3.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Balanced Fund Retail  vs.  Multi Asset Growth Strategy

Balanced Fund Retail

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Balanced Fund Retail are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Balanced Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Multi Asset Growth

Risk-Adjusted Performance

Mild

Over the last 90 days Multi Asset Growth Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Multi-asset Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Balanced Fund and Multi-asset Growth

The main advantage of trading using opposite Balanced Fund and Multi-asset Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Multi-asset Growth 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 Growth will offset losses from the drop in Multi-asset Growth's long position.

The idea behind Balanced Fund Retail and Multi Asset Growth Strategy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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.