Correlation Between High Yield and School Specialty
Can any of the company-specific risk be diversified away by investing in both High Yield and School Specialty 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 High Yield and School Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Municipal Fund and School Specialty, you can compare the effects of market volatilities on High Yield and School Specialty 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 High Yield with a short position of School Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Yield and School Specialty.
Diversification Opportunities for High Yield and School Specialty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and School is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Municipal Fund and School Specialty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on School Specialty and High Yield 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 High Yield Municipal Fund are associated (or correlated) with School Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of School Specialty has no effect on the direction of High Yield i.e., High Yield and School Specialty go up and down completely randomly.
Pair Corralation between High Yield and School Specialty
If you would invest 814.00 in High Yield Municipal Fund on November 3, 2024 and sell it today you would earn a total of 72.00 from holding High Yield Municipal Fund or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.56% |
| Values | Daily Returns |
High Yield Municipal Fund vs. School Specialty
Performance |
| Timeline |
| High Yield Municipal |
| School Specialty |
High Yield and School Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Yield and School Specialty
The main advantage of trading using opposite High Yield and School Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Yield position performs unexpectedly, School Specialty 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 School Specialty will offset losses from the drop in School Specialty's long position.| High Yield vs. High Yield Fund Investor | High Yield vs. Intermediate Term Tax Free Bond | High Yield vs. California High Yield Municipal | High Yield vs. T Rowe Price |
| School Specialty vs. Card Factory plc | School Specialty vs. Ceconomy AG ADR | School Specialty vs. Bowlin Travel Centers | School Specialty vs. National Vision Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |