Correlation Between Growth Strategy and City National
Can any of the company-specific risk be diversified away by investing in both Growth Strategy 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 Growth Strategy and City National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Strategy Fund and City National Rochdale, you can compare the effects of market volatilities on Growth Strategy 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 Growth Strategy with a short position of City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Strategy and City National.
Diversification Opportunities for Growth Strategy and City National
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GROWTH and City is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund 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 Growth Strategy 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 Growth Strategy Fund 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 Growth Strategy i.e., Growth Strategy and City National go up and down completely randomly.
Pair Corralation between Growth Strategy and City National
If you would invest 1,167 in Growth Strategy Fund on September 3, 2024 and sell it today you would earn a total of 39.00 from holding Growth Strategy Fund or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
Growth Strategy Fund vs. City National Rochdale
Performance |
| Timeline |
| Growth Strategy |
| City National Rochdale |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Growth Strategy and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Strategy and City National
The main advantage of trading using opposite Growth Strategy and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Strategy 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.| Growth Strategy vs. American Funds The | Growth Strategy vs. American Funds The | Growth Strategy vs. Income Fund Of | Growth Strategy vs. Income Fund Of |
| City National vs. Qs Large Cap | City National vs. Nationwide Global Equity | City National vs. Growth Strategy Fund | City National vs. Issachar Fund Class |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |