Correlation Between New Economy and Curasset Capital
Can any of the company-specific risk be diversified away by investing in both New Economy and Curasset Capital 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 Curasset Capital 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 Curasset Capital Management, you can compare the effects of market volatilities on New Economy and Curasset Capital 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 Curasset Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Economy and Curasset Capital.
Diversification Opportunities for New Economy and Curasset Capital
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between New and Curasset is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding New Economy Fund and Curasset Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curasset Capital Man 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 Curasset Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curasset Capital Man has no effect on the direction of New Economy i.e., New Economy and Curasset Capital go up and down completely randomly.
Pair Corralation between New Economy and Curasset Capital
Assuming the 90 days horizon New Economy Fund is expected to generate 11.95 times more return on investment than Curasset Capital. However, New Economy is 11.95 times more volatile than Curasset Capital Management. It trades about 0.18 of its potential returns per unit of risk. Curasset Capital Management is currently generating about 0.04 per unit of risk. If you would invest 4,732 in New Economy Fund on October 9, 2025 and sell it today you would earn a total of 1,204 from holding New Economy Fund or generate 25.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Economy Fund vs. Curasset Capital Management
Performance |
| Timeline |
| New Economy Fund |
| Curasset Capital Man |
New Economy and Curasset Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Economy and Curasset Capital
The main advantage of trading using opposite New Economy and Curasset Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Economy position performs unexpectedly, Curasset Capital 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 Curasset Capital will offset losses from the drop in Curasset Capital's long position.| New Economy vs. Gamco Natural Resources | New Economy vs. Jennison Natural Resources | New Economy vs. Franklin Natural Resources | New Economy vs. Dreyfus Natural Resources |
| Curasset Capital vs. Calvert Large Cap | Curasset Capital vs. Thrivent Aggressive Allocation | Curasset Capital vs. American Funds 2050 | Curasset Capital vs. New Economy 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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