Correlation Between Adaptive Alpha and Saba Closed
Can any of the company-specific risk be diversified away by investing in both Adaptive Alpha 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 Adaptive Alpha and Saba Closed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adaptive Alpha Opportunities and Saba Closed End Funds, you can compare the effects of market volatilities on Adaptive Alpha 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 Adaptive Alpha with a short position of Saba Closed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaptive Alpha and Saba Closed.
Diversification Opportunities for Adaptive Alpha and Saba Closed
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Adaptive and Saba is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Adaptive Alpha Opportunities 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 Adaptive Alpha 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 Adaptive Alpha Opportunities 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 Adaptive Alpha i.e., Adaptive Alpha and Saba Closed go up and down completely randomly.
Pair Corralation between Adaptive Alpha and Saba Closed
Given the investment horizon of 90 days Adaptive Alpha Opportunities is expected to generate 1.58 times more return on investment than Saba Closed. However, Adaptive Alpha is 1.58 times more volatile than Saba Closed End Funds. It trades about 0.05 of its potential returns per unit of risk. Saba Closed End Funds is currently generating about 0.04 per unit of risk. If you would invest 2,885 in Adaptive Alpha Opportunities on August 30, 2024 and sell it today you would earn a total of 56.00 from holding Adaptive Alpha Opportunities or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adaptive Alpha Opportunities vs. Saba Closed End Funds
Performance |
| Timeline |
| Adaptive Alpha Oppor |
| Saba Closed End |
Adaptive Alpha and Saba Closed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaptive Alpha and Saba Closed
The main advantage of trading using opposite Adaptive Alpha and Saba Closed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaptive Alpha 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.| Adaptive Alpha vs. First Trust Active | Adaptive Alpha vs. Absolute Core Strategy | Adaptive Alpha vs. Pacer Lunt Large | Adaptive Alpha vs. SmartETFs Asia Pacific |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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