Correlation Between New Economy and Leuthold Global
Can any of the company-specific risk be diversified away by investing in both New Economy and Leuthold Global 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 Economy and Leuthold Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Economy Fund and Leuthold Global Fund, you can compare the effects of market volatilities on New Economy and Leuthold Global 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 Economy with a short position of Leuthold Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Economy and Leuthold Global.
Diversification Opportunities for New Economy and Leuthold Global
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between New and Leuthold is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding New Economy Fund and Leuthold Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold Global and New Economy 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 Economy Fund are associated (or correlated) with Leuthold Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold Global has no effect on the direction of New Economy i.e., New Economy and Leuthold Global go up and down completely randomly.
Pair Corralation between New Economy and Leuthold Global
If you would invest 4,678 in New Economy Fund on September 14, 2024 and sell it today you would earn a total of 1,311 from holding New Economy Fund or generate 28.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Economy Fund vs. Leuthold Global Fund
Performance |
| Timeline |
| New Economy Fund |
| Leuthold Global |
New Economy and Leuthold Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Economy and Leuthold Global
The main advantage of trading using opposite New Economy and Leuthold Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Economy position performs unexpectedly, Leuthold Global 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 Leuthold Global will offset losses from the drop in Leuthold Global's long position.| New Economy vs. Atac Inflation Rotation | New Economy vs. Fidelity Sai Inflationfocused | New Economy vs. Aqr Managed Futures | New Economy vs. American Funds Inflation |
| Leuthold Global vs. Leuthold Select Industries | Leuthold Global vs. Leuthold E Investment | Leuthold Global vs. Leuthold E Investment | Leuthold Global vs. Grizzly Short Fund |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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