Correlation Between Locorr Macro and City National
Can any of the company-specific risk be diversified away by investing in both Locorr Macro 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 Locorr Macro and City National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locorr Macro Strategies and City National Rochdale, you can compare the effects of market volatilities on Locorr Macro 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 Locorr Macro with a short position of City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locorr Macro and City National.
Diversification Opportunities for Locorr Macro and City National
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Locorr and City is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Locorr Macro Strategies 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 Locorr Macro 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 Locorr Macro Strategies 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 Locorr Macro i.e., Locorr Macro and City National go up and down completely randomly.
Pair Corralation between Locorr Macro and City National
Assuming the 90 days horizon Locorr Macro Strategies is expected to generate 0.35 times more return on investment than City National. However, Locorr Macro Strategies is 2.87 times less risky than City National. It trades about 0.04 of its potential returns per unit of risk. City National Rochdale is currently generating about 0.01 per unit of risk. If you would invest 739.00 in Locorr Macro Strategies on November 3, 2024 and sell it today you would earn a total of 32.00 from holding Locorr Macro Strategies or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Locorr Macro Strategies vs. City National Rochdale
Performance |
| Timeline |
| Locorr Macro Strategies |
| City National Rochdale |
Locorr Macro and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locorr Macro and City National
The main advantage of trading using opposite Locorr Macro and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locorr Macro 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.| Locorr Macro vs. Touchstone Ultra Short | Locorr Macro vs. Siit High Yield | Locorr Macro vs. Ab Bond Inflation | Locorr Macro vs. Barings High Yield |
| City National vs. Ab Bond Inflation | City National vs. Touchstone Ultra Short | City National vs. Artisan High Income | City National vs. Rbc Bluebay Emerging |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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