Correlation Between New Perspective and Gansu Yasheng
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By analyzing existing cross correlation between New Perspective Fund and Gansu Yasheng Industrial, you can compare the effects of market volatilities on New Perspective and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and Gansu Yasheng.
Diversification Opportunities for New Perspective and Gansu Yasheng
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Gansu is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of New Perspective i.e., New Perspective and Gansu Yasheng go up and down completely randomly.
Pair Corralation between New Perspective and Gansu Yasheng
Assuming the 90 days horizon New Perspective Fund is expected to generate 0.52 times more return on investment than Gansu Yasheng. However, New Perspective Fund is 1.91 times less risky than Gansu Yasheng. It trades about -0.06 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about -0.07 per unit of risk. If you would invest 6,525 in New Perspective Fund on October 23, 2024 and sell it today you would lose (186.00) from holding New Perspective Fund or give up 2.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.68% |
| Values | Daily Returns |
New Perspective Fund vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| New Perspective |
| Gansu Yasheng Industrial |
New Perspective and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and Gansu Yasheng
The main advantage of trading using opposite New Perspective and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng'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 |
| Gansu Yasheng vs. Shuhua Sports Co | Gansu Yasheng vs. Sportsoul Co Ltd | Gansu Yasheng vs. Liaoning Chengda Biotechnology | Gansu Yasheng vs. Fujian Wanchen Biotechnology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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