Correlation Between Ellsworth Convertible and Saba Capital
Can any of the company-specific risk be diversified away by investing in both Ellsworth Convertible and Saba Capital 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 Ellsworth Convertible and Saba Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellsworth Convertible Growth and Saba Capital Income, you can compare the effects of market volatilities on Ellsworth Convertible and Saba Capital 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 Ellsworth Convertible with a short position of Saba Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellsworth Convertible and Saba Capital.
Diversification Opportunities for Ellsworth Convertible and Saba Capital
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ellsworth and Saba is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ellsworth Convertible Growth and Saba Capital Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saba Capital Income and Ellsworth Convertible 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 Ellsworth Convertible Growth are associated (or correlated) with Saba Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saba Capital Income has no effect on the direction of Ellsworth Convertible i.e., Ellsworth Convertible and Saba Capital go up and down completely randomly.
Pair Corralation between Ellsworth Convertible and Saba Capital
Considering the 90-day investment horizon Ellsworth Convertible Growth is expected to generate 1.18 times more return on investment than Saba Capital. However, Ellsworth Convertible is 1.18 times more volatile than Saba Capital Income. It trades about 0.15 of its potential returns per unit of risk. Saba Capital Income is currently generating about 0.09 per unit of risk. If you would invest 958.00 in Ellsworth Convertible Growth on October 21, 2024 and sell it today you would earn a total of 32.00 from holding Ellsworth Convertible Growth or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellsworth Convertible Growth vs. Saba Capital Income
Performance |
| Timeline |
| Ellsworth Convertible |
| Saba Capital Income |
Ellsworth Convertible and Saba Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellsworth Convertible and Saba Capital
The main advantage of trading using opposite Ellsworth Convertible and Saba Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellsworth Convertible position performs unexpectedly, Saba Capital 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 Capital will offset losses from the drop in Saba Capital's long position.| Ellsworth Convertible vs. Azimut Holding SpA | Ellsworth Convertible vs. Ameritrans Capital Corp | Ellsworth Convertible vs. Gdl Closed Fund | Ellsworth Convertible vs. Gabelli Global Small |
| Saba Capital vs. Federated Premier Municipal | Saba Capital vs. Blackrock Muniyield | Saba Capital vs. Diamond Hill Investment | Saba Capital vs. NXG NextGen Infrastructure |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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