Correlation Between City National and Transamerica Funds
Can any of the company-specific risk be diversified away by investing in both City National and Transamerica Funds 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 City National and Transamerica Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Transamerica Funds , you can compare the effects of market volatilities on City National and Transamerica Funds 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 City National with a short position of Transamerica Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Transamerica Funds.
Diversification Opportunities for City National and Transamerica Funds
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between City and Transamerica is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Transamerica Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Funds and City National 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 City National Rochdale are associated (or correlated) with Transamerica Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Funds has no effect on the direction of City National i.e., City National and Transamerica Funds go up and down completely randomly.
Pair Corralation between City National and Transamerica Funds
Assuming the 90 days horizon City National Rochdale is expected to generate 0.55 times more return on investment than Transamerica Funds. However, City National Rochdale is 1.83 times less risky than Transamerica Funds. It trades about 0.25 of its potential returns per unit of risk. Transamerica Funds is currently generating about 0.0 per unit of risk. If you would invest 1,662 in City National Rochdale on September 12, 2024 and sell it today you would earn a total of 321.00 from holding City National Rochdale or generate 19.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 65.18% |
Values | Daily Returns |
City National Rochdale vs. Transamerica Funds
Performance |
Timeline |
City National Rochdale |
Transamerica Funds |
City National and Transamerica Funds Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with City National and Transamerica Funds
The main advantage of trading using opposite City National and Transamerica Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Transamerica Funds 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 Transamerica Funds will offset losses from the drop in Transamerica Funds' long position.City National vs. Allianzgi Diversified Income | City National vs. Blackrock Conservative Prprdptfinstttnl | City National vs. Lord Abbett Diversified | City National vs. Wealthbuilder Conservative Allocation |
Transamerica Funds vs. Gmo High Yield | Transamerica Funds vs. City National Rochdale | Transamerica Funds vs. Jpmorgan High Yield | Transamerica Funds vs. Strategic Advisers Income |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Stocks Directory Find actively traded stocks across global markets | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |