Correlation Between New Perspective and Huaxia Fund
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By analyzing existing cross correlation between New Perspective Fund and Huaxia Fund Management, you can compare the effects of market volatilities on New Perspective and Huaxia Fund 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 Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and Huaxia Fund.
Diversification Opportunities for New Perspective and Huaxia Fund
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between New and Huaxia is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund and Huaxia Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Fund Management 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 Huaxia Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Fund Management has no effect on the direction of New Perspective i.e., New Perspective and Huaxia Fund go up and down completely randomly.
Pair Corralation between New Perspective and Huaxia Fund
Assuming the 90 days horizon New Perspective Fund is expected to generate 0.87 times more return on investment than Huaxia Fund. However, New Perspective Fund is 1.15 times less risky than Huaxia Fund. It trades about 0.26 of its potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.17 per unit of risk. If you would invest 6,202 in New Perspective Fund on November 3, 2024 and sell it today you would earn a total of 280.00 from holding New Perspective Fund or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
New Perspective Fund vs. Huaxia Fund Management
Performance |
| Timeline |
| New Perspective |
| Huaxia Fund Management |
New Perspective and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and Huaxia Fund
The main advantage of trading using opposite New Perspective and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective position performs unexpectedly, Huaxia Fund 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 Huaxia Fund will offset losses from the drop in Huaxia Fund'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 |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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