Correlation Between New Perspective and Beijing Wantai
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By analyzing existing cross correlation between New Perspective Fund and Beijing Wantai Biological, you can compare the effects of market volatilities on New Perspective and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and Beijing Wantai.
Diversification Opportunities for New Perspective and Beijing Wantai
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and Beijing is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of New Perspective i.e., New Perspective and Beijing Wantai go up and down completely randomly.
Pair Corralation between New Perspective and Beijing Wantai
Assuming the 90 days horizon New Perspective Fund is expected to generate 0.65 times more return on investment than Beijing Wantai. However, New Perspective Fund is 1.54 times less risky than Beijing Wantai. It trades about 0.21 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about -0.16 per unit of risk. If you would invest 6,264 in New Perspective Fund on November 4, 2024 and sell it today you would earn a total of 218.00 from holding New Perspective Fund or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
New Perspective Fund vs. Beijing Wantai Biological
Performance |
| Timeline |
| New Perspective |
| Beijing Wantai Biological |
New Perspective and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and Beijing Wantai
The main advantage of trading using opposite New Perspective and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai'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 |
| Beijing Wantai vs. ROPEOK Technology Group | Beijing Wantai vs. Maxvision Technology Corp | Beijing Wantai vs. Montage Technology Co | Beijing Wantai vs. Beijing Jiaman Dress |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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