New China Correlations

NCL Stock  EUR 3.10  0.06  1.97%   
The current 90-days correlation between New China Life and Kingdee International Software is 0.38 (i.e., Weak diversification). The correlation of New China is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

New China Correlation With Market

NewDowDiversified AwayNewDowDiversified Away100%

Good diversification

The correlation between New China Life and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and DJI in the same portfolio, assuming nothing else is changed.
  
The ability to find closely correlated positions to New China could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace New China when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back New China - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling New China Life to buy it.

Moving against New Stock

  0.44DBPD Xtrackers ShortDAXPairCorr
  0.37PKX POSCO HoldingsPairCorr
  0.31GGG GUDANG GARAMPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
WSV2KDIC
WSV2S49
H0OWSV2
6B0NRM
ZFI1KDIC
AF4ZFI1
  
High negative correlations   
H0OAF4

Risk-Adjusted Indicators

There is a big difference between New Stock performing well and New China Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze New China's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Be your own money manager

Our tools can tell you how much better you can do entering a position in New China without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Portfolio Optimization Now

   

Portfolio Optimization

Compute new portfolio that will generate highest expected return given your specified tolerance for risk
All  Next Launch Module