Correlation Between New Perspective and Zhangjiagang Elegant
Specify exactly 2 symbols:
By analyzing existing cross correlation between New Perspective Fund and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on New Perspective and Zhangjiagang Elegant 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 Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and Zhangjiagang Elegant.
Diversification Opportunities for New Perspective and Zhangjiagang Elegant
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Zhangjiagang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home 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 Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of New Perspective i.e., New Perspective and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between New Perspective and Zhangjiagang Elegant
Assuming the 90 days horizon New Perspective is expected to generate 1.41 times less return on investment than Zhangjiagang Elegant. But when comparing it to its historical volatility, New Perspective Fund is 2.99 times less risky than Zhangjiagang Elegant. It trades about 0.26 of its potential returns per unit of risk. Zhangjiagang Elegant Home is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 907.00 in Zhangjiagang Elegant Home on November 3, 2024 and sell it today you would earn a total of 48.00 from holding Zhangjiagang Elegant Home or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
New Perspective Fund vs. Zhangjiagang Elegant Home
Performance |
| Timeline |
| New Perspective |
| Zhangjiagang Elegant Home |
New Perspective and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and Zhangjiagang Elegant
The main advantage of trading using opposite New Perspective and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant'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 |
| Zhangjiagang Elegant vs. Industrial and Commercial | Zhangjiagang Elegant vs. Agricultural Bank of | Zhangjiagang Elegant vs. Bank of China | Zhangjiagang Elegant vs. Postal Savings Bank |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |