Correlation Between New Perspective and Invesco Raymond
Can any of the company-specific risk be diversified away by investing in both New Perspective and Invesco Raymond at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining New Perspective and Invesco Raymond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Perspective Fund and Invesco Raymond James, you can compare the effects of market volatilities on New Perspective and Invesco Raymond 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 Invesco Raymond. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and Invesco Raymond.
Diversification Opportunities for New Perspective and Invesco Raymond
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and Invesco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund and Invesco Raymond James in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Raymond James 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 Invesco Raymond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Raymond James has no effect on the direction of New Perspective i.e., New Perspective and Invesco Raymond go up and down completely randomly.
Pair Corralation between New Perspective and Invesco Raymond
Assuming the 90 days horizon New Perspective Fund is expected to generate 0.81 times more return on investment than Invesco Raymond. However, New Perspective Fund is 1.23 times less risky than Invesco Raymond. It trades about 0.06 of its potential returns per unit of risk. Invesco Raymond James is currently generating about 0.03 per unit of risk. If you would invest 5,119 in New Perspective Fund on October 25, 2024 and sell it today you would earn a total of 1,314 from holding New Perspective Fund or generate 25.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 76.67% |
| Values | Daily Returns |
New Perspective Fund vs. Invesco Raymond James
Performance |
| Timeline |
| New Perspective |
| Invesco Raymond James |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
New Perspective and Invesco Raymond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and Invesco Raymond
The main advantage of trading using opposite New Perspective and Invesco Raymond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective position performs unexpectedly, Invesco Raymond 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 Invesco Raymond will offset losses from the drop in Invesco Raymond'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 |
| Invesco Raymond vs. Invesco SP MidCap | Invesco Raymond vs. Invesco Zacks Mid Cap | Invesco Raymond vs. Invesco SP Spin Off | Invesco Raymond vs. Invesco SP SmallCap |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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