Correlation Between New Perspective and Ningbo Thermal
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By analyzing existing cross correlation between New Perspective Fund and Ningbo Thermal Power, you can compare the effects of market volatilities on New Perspective and Ningbo Thermal 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 Ningbo Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and Ningbo Thermal.
Diversification Opportunities for New Perspective and Ningbo Thermal
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and Ningbo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund and Ningbo Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Thermal Power 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 Ningbo Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Thermal Power has no effect on the direction of New Perspective i.e., New Perspective and Ningbo Thermal go up and down completely randomly.
Pair Corralation between New Perspective and Ningbo Thermal
Assuming the 90 days horizon New Perspective Fund is expected to generate 0.34 times more return on investment than Ningbo Thermal. However, New Perspective Fund is 2.9 times less risky than Ningbo Thermal. It trades about 0.05 of its potential returns per unit of risk. Ningbo Thermal Power is currently generating about -0.29 per unit of risk. If you would invest 6,302 in New Perspective Fund on October 23, 2024 and sell it today you would earn a total of 37.00 from holding New Perspective Fund or generate 0.59% 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. Ningbo Thermal Power
Performance |
| Timeline |
| New Perspective |
| Ningbo Thermal Power |
New Perspective and Ningbo Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and Ningbo Thermal
The main advantage of trading using opposite New Perspective and Ningbo Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective position performs unexpectedly, Ningbo Thermal 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 Ningbo Thermal will offset losses from the drop in Ningbo Thermal'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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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