Correlation Between New Alternatives and New Alternatives
Can any of the company-specific risk be diversified away by investing in both New Alternatives and New Alternatives 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 Alternatives and New Alternatives into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Alternatives Fund and New Alternatives Fund, you can compare the effects of market volatilities on New Alternatives and New Alternatives 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 Alternatives with a short position of New Alternatives. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Alternatives and New Alternatives.
Diversification Opportunities for New Alternatives and New Alternatives
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and New is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding New Alternatives Fund and New Alternatives Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Alternatives and New Alternatives 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 Alternatives Fund are associated (or correlated) with New Alternatives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Alternatives has no effect on the direction of New Alternatives i.e., New Alternatives and New Alternatives go up and down completely randomly.
Pair Corralation between New Alternatives and New Alternatives
Assuming the 90 days horizon New Alternatives Fund is expected to under-perform the New Alternatives. In addition to that, New Alternatives is 1.0 times more volatile than New Alternatives Fund. It trades about -0.01 of its total potential returns per unit of risk. New Alternatives Fund is currently generating about -0.01 per unit of volatility. If you would invest 7,038 in New Alternatives Fund on August 26, 2024 and sell it today you would lose (558.00) from holding New Alternatives Fund or give up 7.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Alternatives Fund vs. New Alternatives Fund
Performance |
| Timeline |
| New Alternatives |
| New Alternatives |
New Alternatives and New Alternatives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Alternatives and New Alternatives
The main advantage of trading using opposite New Alternatives and New Alternatives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Alternatives position performs unexpectedly, New Alternatives 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 Alternatives will offset losses from the drop in New Alternatives' long position.| New Alternatives vs. New Alternatives Fund | New Alternatives vs. Alternative Credit Income | New Alternatives vs. Vaughan Nelson Select | New Alternatives vs. Industrials Portfolio Industrials |
| New Alternatives vs. Guinness Atkinson Alternative | New Alternatives vs. Calvert Global Energy | New Alternatives vs. Portfolio 21 Global | New Alternatives vs. Green Century Balanced |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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