Correlation Between Cmg Ultra and New Perspective
Can any of the company-specific risk be diversified away by investing in both Cmg Ultra and New Perspective 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 Cmg Ultra and New Perspective into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cmg Ultra Short and New Perspective Fund, you can compare the effects of market volatilities on Cmg Ultra and New Perspective 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 Cmg Ultra with a short position of New Perspective. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cmg Ultra and New Perspective.
Diversification Opportunities for Cmg Ultra and New Perspective
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cmg and New is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cmg Ultra Short and New Perspective Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Perspective and Cmg Ultra 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 Cmg Ultra Short are associated (or correlated) with New Perspective. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Perspective has no effect on the direction of Cmg Ultra i.e., Cmg Ultra and New Perspective go up and down completely randomly.
Pair Corralation between Cmg Ultra and New Perspective
Assuming the 90 days horizon Cmg Ultra is expected to generate 3.59 times less return on investment than New Perspective. But when comparing it to its historical volatility, Cmg Ultra Short is 8.15 times less risky than New Perspective. It trades about 0.24 of its potential returns per unit of risk. New Perspective Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,553 in New Perspective Fund on September 14, 2024 and sell it today you would earn a total of 1,202 from holding New Perspective Fund or generate 21.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cmg Ultra Short vs. New Perspective Fund
Performance |
| Timeline |
| Cmg Ultra Short |
| New Perspective |
Cmg Ultra and New Perspective Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cmg Ultra and New Perspective
The main advantage of trading using opposite Cmg Ultra and New Perspective positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cmg Ultra position performs unexpectedly, New Perspective 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 New Perspective will offset losses from the drop in New Perspective's long position.| Cmg Ultra vs. Extended Market Index | Cmg Ultra vs. Ab All Market | Cmg Ultra vs. Sp Midcap Index | Cmg Ultra vs. Ashmore Emerging Markets |
| New Perspective vs. Janus Global Technology | New Perspective vs. Fidelity Advisor Technology | New Perspective vs. Blackrock Science Technology | New Perspective vs. Hennessy Technology Fund |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |