Correlation Between Wilmington Funds and City National

Can any of the company-specific risk be diversified away by investing in both Wilmington Funds and City National 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 Wilmington Funds and City National into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wilmington Funds and City National Rochdale, you can compare the effects of market volatilities on Wilmington Funds and City National 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 Wilmington Funds with a short position of City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Funds and City National.

Diversification Opportunities for Wilmington Funds and City National

0.0

Correlation Coefficient

Wilmington Funds  City National

Pay attention - limited upside

The 3 months correlation between Wilmington and City is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Funds and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale and Wilmington Funds 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 Wilmington Funds are associated (or correlated) with City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Wilmington Funds i.e., Wilmington Funds and City National go up and down completely randomly.

Pair Corralation between Wilmington Funds and City National

Assuming the 90 days horizon Wilmington Funds is expected to generate 125.22 times more return on investment than City National. However, Wilmington Funds is 125.22 times more volatile than City National Rochdale. It trades about 0.04 of its potential returns per unit of risk. City National Rochdale is currently generating about 0.25 per unit of risk. If you would invest  91.00  in Wilmington Funds on September 12, 2024 and sell it today you would earn a total of  9.00  from holding Wilmington Funds or generate 9.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.8%
Values	Daily Returns

Wilmington Funds   vs.  City National Rochdale

Wilmington Funds

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wilmington Funds has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Wilmington Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

City National Rochdale

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in City National Rochdale are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, City National is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Wilmington Funds and City National

The main advantage of trading using opposite Wilmington Funds and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Funds position performs unexpectedly, City National 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 City National will offset losses from the drop in City National's long position.

The idea behind Wilmington Funds and City National Rochdale 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.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.