Correlation Between Champlain Mid and Salient International
Can any of the company-specific risk be diversified away by investing in both Champlain Mid and Salient International 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 Champlain Mid and Salient International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Mid Cap and Salient International Real, you can compare the effects of market volatilities on Champlain Mid and Salient International 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 Champlain Mid with a short position of Salient International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Mid and Salient International.
Diversification Opportunities for Champlain Mid and Salient International
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Champlain and Salient is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Mid Cap and Salient International Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient International and Champlain Mid 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 Champlain Mid Cap are associated (or correlated) with Salient International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient International has no effect on the direction of Champlain Mid i.e., Champlain Mid and Salient International go up and down completely randomly.
Pair Corralation between Champlain Mid and Salient International
Assuming the 90 days horizon Champlain Mid Cap is expected to generate 1.0 times more return on investment than Salient International. However, Champlain Mid is 1.0 times more volatile than Salient International Real. It trades about 0.06 of its potential returns per unit of risk. Salient International Real is currently generating about 0.04 per unit of risk. If you would invest 2,032 in Champlain Mid Cap on September 5, 2024 and sell it today you would earn a total of 582.00 from holding Champlain Mid Cap or generate 28.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Mid Cap vs. Salient International Real
Performance |
| Timeline |
| Champlain Mid Cap |
| Salient International |
Champlain Mid and Salient International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Mid and Salient International
The main advantage of trading using opposite Champlain Mid and Salient International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Mid position performs unexpectedly, Salient International 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 Salient International will offset losses from the drop in Salient International's long position.| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. American Mutual Fund | Champlain Mid vs. Loomis Sayles Growth |
| Salient International vs. T Rowe Price | Salient International vs. Old Westbury Large | Salient International vs. Rbb Fund | Salient International vs. Scharf Global Opportunity |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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