Correlation Between New Perspective and SKijchai Enterprise
Can any of the company-specific risk be diversified away by investing in both New Perspective and SKijchai Enterprise 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 SKijchai Enterprise 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 SKijchai Enterprise Public, you can compare the effects of market volatilities on New Perspective and SKijchai Enterprise 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 SKijchai Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and SKijchai Enterprise.
Diversification Opportunities for New Perspective and SKijchai Enterprise
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between New and SKijchai is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund and SKijchai Enterprise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKijchai Enterprise 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 SKijchai Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKijchai Enterprise has no effect on the direction of New Perspective i.e., New Perspective and SKijchai Enterprise go up and down completely randomly.
Pair Corralation between New Perspective and SKijchai Enterprise
Assuming the 90 days horizon New Perspective Fund is expected to generate 0.48 times more return on investment than SKijchai Enterprise. However, New Perspective Fund is 2.07 times less risky than SKijchai Enterprise. It trades about -0.01 of its potential returns per unit of risk. SKijchai Enterprise Public is currently generating about -0.02 per unit of risk. If you would invest 6,504 in New Perspective Fund on October 24, 2024 and sell it today you would lose (71.00) from holding New Perspective Fund or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
New Perspective Fund vs. SKijchai Enterprise Public
Performance |
| Timeline |
| New Perspective |
| SKijchai Enterprise |
New Perspective and SKijchai Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and SKijchai Enterprise
The main advantage of trading using opposite New Perspective and SKijchai Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective position performs unexpectedly, SKijchai Enterprise 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 SKijchai Enterprise will offset losses from the drop in SKijchai Enterprise's long position.| New Perspective vs. Growth Fund Of | New Perspective vs. American Funds Fundamental | New Perspective vs. Smallcap World Fund |
| SKijchai Enterprise vs. Sahamitr Pressure Container | SKijchai Enterprise vs. Diamond Building Products | SKijchai Enterprise vs. Regional Container Lines | SKijchai Enterprise vs. Lalin Property Public |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |