Correlation Between Saba Closed and Argent Mid
Can any of the company-specific risk be diversified away by investing in both Saba Closed and Argent Mid 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 Saba Closed and Argent Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saba Closed End Funds and Argent Mid Cap, you can compare the effects of market volatilities on Saba Closed and Argent Mid 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 Saba Closed with a short position of Argent Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saba Closed and Argent Mid.
Diversification Opportunities for Saba Closed and Argent Mid
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saba and Argent is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Saba Closed End Funds and Argent Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argent Mid Cap and Saba Closed 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 Saba Closed End Funds are associated (or correlated) with Argent Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argent Mid Cap has no effect on the direction of Saba Closed i.e., Saba Closed and Argent Mid go up and down completely randomly.
Pair Corralation between Saba Closed and Argent Mid
Given the investment horizon of 90 days Saba Closed End Funds is expected to generate 0.72 times more return on investment than Argent Mid. However, Saba Closed End Funds is 1.39 times less risky than Argent Mid. It trades about 0.11 of its potential returns per unit of risk. Argent Mid Cap is currently generating about 0.07 per unit of risk. If you would invest 1,523 in Saba Closed End Funds on November 19, 2024 and sell it today you would earn a total of 728.00 from holding Saba Closed End Funds or generate 47.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Saba Closed End Funds vs. Argent Mid Cap
Performance |
| Timeline |
| Saba Closed End |
| Argent Mid Cap |
Saba Closed and Argent Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saba Closed and Argent Mid
The main advantage of trading using opposite Saba Closed and Argent Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saba Closed position performs unexpectedly, Argent Mid 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 Argent Mid will offset losses from the drop in Argent Mid's long position.| Saba Closed vs. First Trust Income | Saba Closed vs. Invesco CEF Income | Saba Closed vs. GraniteShares HIPS High | Saba Closed vs. Amplify High Income |
| Argent Mid vs. NGL Energy Partners | Argent Mid vs. Martin Midstream Partners | Argent Mid vs. Delek Logistics Partners |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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