New Economy Fund Market Value
| RNGEX Fund | USD 55.90 0.45 0.81% |
| Symbol | New |
New Economy '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 Economy'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 Economy.
| 01/24/2024 |
| 04/23/2024 |
If you would invest 0.00 in New Economy on January 24, 2024 and sell it all today you would earn a total of 0.00 from holding New Economy Fund or generate 0.0% return on investment in New Economy over 90 days. New Economy is related to or competes with Income Fund, New World, American Mutual, American Mutual, American Funds, and American Funds. The fund invests primarily in common stocks that the investment adviser believes have the potential for growth More
New Economy 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 Economy'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 Economy Fund upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.9228 | |||
| Information Ratio | (0.01) | |||
| Maximum Drawdown | 4.73 | |||
| Value At Risk | (1.52) | |||
| Potential Upside | 1.31 |
New Economy Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for New Economy's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as New Economy's standard deviation. In reality, there are many statistical measures that can use New Economy historical prices to predict the future New Economy's volatility.| Risk Adjusted Performance | 0.0557 | |||
| Jensen Alpha | (0.01) | |||
| Total Risk Alpha | (0.04) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.0621 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of New Economy'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 Economy Fund Backtested Returns
We consider New Economy very steady. New Economy Fund has Sharpe Ratio of 0.0477, which conveys that the entity had a 0.0477% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for New Economy, which you can use to evaluate the volatility of the fund. Please verify New Economy's Risk Adjusted Performance of 0.0557, downside deviation of 0.9228, and Mean Deviation of 0.707 to check out if the risk estimate we provide is consistent with the expected return of 0.0443%. The fund secures a Beta (Market Risk) of 1.11, which conveys a somewhat significant risk relative to the market. New Economy returns are very sensitive to returns on the market. As the market goes up or down, New Economy is expected to follow.
Auto-correlation | -0.36 |
Poor reverse predictability
New Economy Fund has poor reverse predictability. Overlapping area represents the amount of predictability between New Economy time series from 24th of January 2024 to 9th of March 2024 and 9th of March 2024 to 23rd of April 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 Economy Fund price movement. The serial correlation of -0.36 indicates that just about 36.0% of current New Economy price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.36 | |
| Spearman Rank Test | -0.36 | |
| Residual Average | 0.0 | |
| Price Variance | 1.11 |
New Economy Fund lagged returns against current returns
Autocorrelation, which is New Economy 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 Economy's mutual fund expected returns. We can calculate the autocorrelation of New Economy returns to help us make a trade decision. For example, suppose you find that New Economy 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 Economy 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 Economy mutual fund is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if New Economy 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 Economy mutual fund over time.
Current vs Lagged Prices |
| Timeline |
New Economy Lagged Returns
When evaluating New Economy's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of New Economy mutual fund have on its future price. New Economy 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 Economy autocorrelation shows the relationship between New Economy mutual fund current value and its past values and can show if there is a momentum factor associated with investing in New Economy Fund.
Regressed Prices |
| Timeline |
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards New Economy in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, New Economy's short interest history, or implied volatility extrapolated from New Economy options trading.
Currently Active Assets on Macroaxis
Check out New Economy Correlation, New Economy Volatility and New Economy Alpha and Beta module to complement your research on New Economy. Note that the New Economy Fund information on this page should be used as a complementary analysis to other New Economy's statistical models used 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
New Economy technical mutual fund analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, fund market cycles, or different charting patterns.