New World Fund Market Value
| RNWCX Fund | USD 79.44 0.05 0.06% |
| Symbol | New |
New World 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to New World's mutual fund what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of New World.
| 10/31/2024 |
| 11/30/2024 |
If you would invest 0.00 in New World on October 31, 2024 and sell it all today you would earn a total of 0.00 from holding New World Fund or generate 0.0% return on investment in New World over 30 days. New World is related to or competes with Smallcap World, Capital World, American Funds, Capital Income, and New Perspective. The fund invests primarily in common stocks of companies with significant exposure to countries with developing economie... More
New World Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure New World's mutual fund current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess New World Fund upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.19) | |||
| Maximum Drawdown | 3.78 | |||
| Value At Risk | (1.31) | |||
| Potential Upside | 1.25 |
New World Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for New World's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as New World's standard deviation. In reality, there are many statistical measures that can use New World historical prices to predict the future New World's volatility.| Risk Adjusted Performance | (0.01) | |||
| Jensen Alpha | (0.07) | |||
| Total Risk Alpha | (0.14) | |||
| Treynor Ratio | (0.04) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of New World's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
New World Fund Backtested Returns
At this stage we consider New Mutual Fund to be very steady. New World Fund has Sharpe Ratio of 0.0195, which conveys that the entity had a 0.0195% return per unit of risk over the last 3 months. We have found twenty-two technical indicators for New World, which you can use to evaluate the volatility of the fund. Please verify New World's Mean Deviation of 0.5416, standard deviation of 0.7456, and Risk Adjusted Performance of (0.01) to check out if the risk estimate we provide is consistent with the expected return of 0.0137%. The fund secures a Beta (Market Risk) of 0.44, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, New World's returns are expected to increase less than the market. However, during the bear market, the loss of holding New World is expected to be smaller as well.
Auto-correlation | 0.04 |
Virtually no predictability
New World Fund has virtually no predictability. Overlapping area represents the amount of predictability between New World time series from 31st of October 2024 to 15th of November 2024 and 15th of November 2024 to 30th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of New World Fund price movement. The serial correlation of 0.04 indicates that only as little as 4.0% of current New World price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.04 | |
| Spearman Rank Test | -0.29 | |
| Residual Average | 0.0 | |
| Price Variance | 0.08 |
New World Fund lagged returns against current returns
Autocorrelation, which is New World mutual fund's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting New World's mutual fund expected returns. We can calculate the autocorrelation of New World returns to help us make a trade decision. For example, suppose you find that New World has exhibited high autocorrelation historically, and you observe that the mutual fund is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
New World regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If New World mutual fund is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if New World mutual fund is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in New World mutual fund over time.
Current vs Lagged Prices |
| Timeline |
New World Lagged Returns
When evaluating New World's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of New World mutual fund have on its future price. New World autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, New World autocorrelation shows the relationship between New World mutual fund current value and its past values and can show if there is a momentum factor associated with investing in New World Fund.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Other Information on Investing in New Mutual Fund
New World financial ratios help investors to determine whether New Mutual Fund is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in New with respect to the benefits of owning New World security.
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