Correlation Between 361 Global and City National
Can any of the company-specific risk be diversified away by investing in both 361 Global and City National 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 361 Global and City National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 361 Global Longshort and City National Rochdale, you can compare the effects of market volatilities on 361 Global and City National 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 361 Global with a short position of City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of 361 Global and City National.
Diversification Opportunities for 361 Global and City National
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 361 and City is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding 361 Global Longshort and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale and 361 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 361 Global Longshort are associated (or correlated) with City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of 361 Global i.e., 361 Global and City National go up and down completely randomly.
Pair Corralation between 361 Global and City National
If you would invest 1,106 in 361 Global Longshort on September 4, 2024 and sell it today you would earn a total of 171.00 from holding 361 Global Longshort or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.34% |
| Values | Daily Returns |
361 Global Longshort vs. City National Rochdale
Performance |
| Timeline |
| 361 Global Longshort |
| City National Rochdale |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
361 Global and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 361 Global and City National
The main advantage of trading using opposite 361 Global and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 361 Global position performs unexpectedly, City National 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 City National will offset losses from the drop in City National's long position.| 361 Global vs. Aqr Large Cap | 361 Global vs. Americafirst Large Cap | 361 Global vs. Siit Large Cap | 361 Global vs. Qs Large Cap |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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