Correlation Between James Balanced: and City National
Can any of the company-specific risk be diversified away by investing in both James Balanced: and City National 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 James Balanced: and City National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and City National Rochdale, you can compare the effects of market volatilities on James Balanced: and City National 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 James Balanced: with a short position of City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and City National.
Diversification Opportunities for James Balanced: and City National
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between James and City is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale and James Balanced: 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 James Balanced Golden are associated (or correlated) with City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of James Balanced: i.e., James Balanced: and City National go up and down completely randomly.
Pair Corralation between James Balanced: and City National
Assuming the 90 days horizon James Balanced Golden is expected to under-perform the City National. But the mutual fund apears to be less risky and, when comparing its historical volatility, James Balanced Golden is 1.38 times less risky than City National. The mutual fund trades about -0.17 of its potential returns per unit of risk. The City National Rochdale is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 2,482 in City National Rochdale on November 29, 2024 and sell it today you would lose (37.00) from holding City National Rochdale or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
James Balanced Golden vs. City National Rochdale
Performance |
| Timeline |
| James Balanced Golden |
| City National Rochdale |
James Balanced: and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and City National
The main advantage of trading using opposite James Balanced: and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: position performs unexpectedly, City National 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 City National will offset losses from the drop in City National's long position.| James Balanced: vs. Permanent Portfolio Class | James Balanced: vs. Berwyn Income Fund | James Balanced: vs. Large Cap Fund | James Balanced: vs. Westcore Plus Bond |
| City National vs. Transamerica International Small | City National vs. Goldman Sachs Small | City National vs. Touchstone Small Cap | City National vs. Ashmore Emerging Markets |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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