Correlation Between New Perspective and CITIGROUP
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By analyzing existing cross correlation between New Perspective Fund and CITIGROUP INC 6675, you can compare the effects of market volatilities on New Perspective and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and CITIGROUP.
Diversification Opportunities for New Perspective and CITIGROUP
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between New and CITIGROUP is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund and CITIGROUP INC 6675 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 6675 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 6675 has no effect on the direction of New Perspective i.e., New Perspective and CITIGROUP go up and down completely randomly.
Pair Corralation between New Perspective and CITIGROUP
Assuming the 90 days horizon New Perspective Fund is expected to generate 0.98 times more return on investment than CITIGROUP. However, New Perspective Fund is 1.02 times less risky than CITIGROUP. It trades about 0.06 of its potential returns per unit of risk. CITIGROUP INC 6675 is currently generating about 0.01 per unit of risk. If you would invest 5,729 in New Perspective Fund on November 3, 2024 and sell it today you would earn a total of 753.00 from holding New Perspective Fund or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.26% |
| Values | Daily Returns |
New Perspective Fund vs. CITIGROUP INC 6675
Performance |
| Timeline |
| New Perspective |
| CITIGROUP INC 6675 |
New Perspective and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and CITIGROUP
The main advantage of trading using opposite New Perspective and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP'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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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