Correlation Between New Perspective and North Huajin
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By analyzing existing cross correlation between New Perspective Fund and North Huajin Chemical, you can compare the effects of market volatilities on New Perspective and North Huajin 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 New Perspective with a short position of North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and North Huajin.
Diversification Opportunities for New Perspective and North Huajin
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and North is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical and New Perspective 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 New Perspective Fund are associated (or correlated) with North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of New Perspective i.e., New Perspective and North Huajin go up and down completely randomly.
Pair Corralation between New Perspective and North Huajin
Assuming the 90 days horizon New Perspective Fund is expected to generate 0.51 times more return on investment than North Huajin. However, New Perspective Fund is 1.97 times less risky than North Huajin. It trades about 0.14 of its potential returns per unit of risk. North Huajin Chemical is currently generating about -0.3 per unit of risk. If you would invest 6,302 in New Perspective Fund on October 24, 2024 and sell it today you would earn a total of 131.00 from holding New Perspective Fund or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
New Perspective Fund vs. North Huajin Chemical
Performance |
| Timeline |
| New Perspective |
| North Huajin Chemical |
New Perspective and North Huajin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and North Huajin
The main advantage of trading using opposite New Perspective and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.| New Perspective vs. Growth Fund Of | New Perspective vs. American Funds Fundamental | New Perspective vs. Investment Of America | New Perspective vs. Smallcap World Fund |
| North Huajin vs. Guangdong Jingyi Metal | North Huajin vs. Songz Automobile Air | North Huajin vs. Haima Automobile Group | North Huajin vs. Ningbo Fangzheng Automobile |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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