Correlation Between City National and Managed Account
Can any of the company-specific risk be diversified away by investing in both City National and Managed Account 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 Managed Account 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 Managed Account Series, you can compare the effects of market volatilities on City National and Managed Account 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 Managed Account. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Managed Account.
Diversification Opportunities for City National and Managed Account
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between City and Managed is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Managed Account Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Managed Account Series 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 Managed Account. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Managed Account Series has no effect on the direction of City National i.e., City National and Managed Account go up and down completely randomly.
Pair Corralation between City National and Managed Account
Assuming the 90 days horizon City National Rochdale is expected to generate 0.3 times more return on investment than Managed Account. However, City National Rochdale is 3.31 times less risky than Managed Account. It trades about 1.0 of its potential returns per unit of risk. Managed Account Series is currently generating about 0.06 per unit of risk. If you would invest 1,938 in City National Rochdale on November 4, 2024 and sell it today you would earn a total of 24.00 from holding City National Rochdale or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City National Rochdale vs. Managed Account Series
Performance |
| Timeline |
| City National Rochdale |
| Managed Account Series |
City National and Managed Account Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Managed Account
The main advantage of trading using opposite City National and Managed Account positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Managed Account 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 Managed Account will offset losses from the drop in Managed Account's long position.| City National vs. Jpmorgan Ultra Short Municipal | City National vs. Federated Government Income | City National vs. Transamerica Intermediate Muni | City National vs. Hartford Municipal Short |
| Managed Account vs. Putnam Global Technology | Managed Account vs. Science Technology Fund | Managed Account vs. Fidelity Advisor Technology | Managed Account vs. Pgim Jennison Technology |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |