Correlation Between Anfield Equity and Saba Closed
Can any of the company-specific risk be diversified away by investing in both Anfield Equity and Saba Closed 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 Anfield Equity and Saba Closed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anfield Equity Sector and Saba Closed End Funds, you can compare the effects of market volatilities on Anfield Equity and Saba Closed 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 Anfield Equity with a short position of Saba Closed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anfield Equity and Saba Closed.
Diversification Opportunities for Anfield Equity and Saba Closed
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anfield and Saba is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Anfield Equity Sector and Saba Closed End Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saba Closed End and Anfield Equity 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 Anfield Equity Sector are associated (or correlated) with Saba Closed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saba Closed End has no effect on the direction of Anfield Equity i.e., Anfield Equity and Saba Closed go up and down completely randomly.
Pair Corralation between Anfield Equity and Saba Closed
Given the investment horizon of 90 days Anfield Equity is expected to generate 2.62 times less return on investment than Saba Closed. In addition to that, Anfield Equity is 1.33 times more volatile than Saba Closed End Funds. It trades about 0.05 of its total potential returns per unit of risk. Saba Closed End Funds is currently generating about 0.17 per unit of volatility. If you would invest 2,195 in Saba Closed End Funds on September 13, 2024 and sell it today you would earn a total of 45.00 from holding Saba Closed End Funds or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anfield Equity Sector vs. Saba Closed End Funds
Performance |
| Timeline |
| Anfield Equity Sector |
| Saba Closed End |
Anfield Equity and Saba Closed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anfield Equity and Saba Closed
The main advantage of trading using opposite Anfield Equity and Saba Closed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anfield Equity position performs unexpectedly, Saba Closed 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 Saba Closed will offset losses from the drop in Saba Closed's long position.| Anfield Equity vs. Anfield Universal Fixed | Anfield Equity vs. Aptus Drawdown Managed | Anfield Equity vs. Absolute Core Strategy | Anfield Equity vs. FT Cboe Vest |
| Saba Closed vs. First Trust Income | Saba Closed vs. Invesco CEF Income | Saba Closed vs. GraniteShares HIPS High | Saba Closed vs. Amplify High Income |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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