Correlation Between City National and Qs Growth
Can any of the company-specific risk be diversified away by investing in both City National and Qs Growth 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 Qs Growth 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 Qs Growth Fund, you can compare the effects of market volatilities on City National and Qs Growth 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 Qs Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Qs Growth.
Diversification Opportunities for City National and Qs Growth
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between City and LANIX is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Qs Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Growth Fund 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 Qs Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Growth Fund has no effect on the direction of City National i.e., City National and Qs Growth go up and down completely randomly.
Pair Corralation between City National and Qs Growth
Assuming the 90 days horizon City National is expected to generate 13.12 times less return on investment than Qs Growth. But when comparing it to its historical volatility, City National Rochdale is 4.39 times less risky than Qs Growth. It trades about 0.05 of its potential returns per unit of risk. Qs Growth Fund is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,871 in Qs Growth Fund on September 13, 2024 and sell it today you would earn a total of 25.00 from holding Qs Growth Fund or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
City National Rochdale vs. Qs Growth Fund
Performance |
| Timeline |
| City National Rochdale |
| Qs Growth Fund |
City National and Qs Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Qs Growth
The main advantage of trading using opposite City National and Qs Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Qs Growth 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 Qs Growth will offset losses from the drop in Qs Growth's long position.| City National vs. Deutsche Real Estate | City National vs. Short Real Estate | City National vs. Sa Real Estate | City National vs. Jhancock Real Estate |
| Qs Growth vs. Western Asset High | Qs Growth vs. Metropolitan West High | Qs Growth vs. Ppm High Yield | Qs Growth vs. Intal High Relative |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |