Correlation Between New Economy and Growth Fund

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both New Economy and Growth Fund 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 Growth Fund 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 Growth Fund Of, you can compare the effects of market volatilities on New Economy and Growth Fund 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 Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Economy and Growth Fund.

Diversification Opportunities for New Economy and Growth Fund

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between New and GROWTH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NEW ECONOMY FUND and GROWTH FUND OF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund 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 Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of New Economy i.e., New Economy and Growth Fund go up and down completely randomly.

Pair Corralation between New Economy and Growth Fund

If you would invest  4,977  in New Economy Fund on December 29, 2023 and sell it today you would earn a total of  1,054  from holding New Economy Fund or generate 21.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

NEW ECONOMY FUND  vs.  GROWTH FUND OF

 Performance 
       Timeline  
New Economy Fund 

Risk-Adjusted Performance

15 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in New Economy Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, New Economy may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Growth Fund 

Risk-Adjusted Performance

17 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Growth Fund Of are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Growth Fund may actually be approaching a critical reversion point that can send shares even higher in April 2024.

New Economy and Growth Fund Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with New Economy and Growth Fund

The main advantage of trading using opposite New Economy and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Economy position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.
The idea behind New Economy Fund and Growth Fund Of pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges