Correlation Between Salient Tactical and Lifex Inflation-protec
Can any of the company-specific risk be diversified away by investing in both Salient Tactical and Lifex Inflation-protec 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 Salient Tactical and Lifex Inflation-protec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salient Tactical Growth and Lifex Inflation Protected Income, you can compare the effects of market volatilities on Salient Tactical and Lifex Inflation-protec 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 Salient Tactical with a short position of Lifex Inflation-protec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salient Tactical and Lifex Inflation-protec.
Diversification Opportunities for Salient Tactical and Lifex Inflation-protec
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salient and Lifex is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Salient Tactical Growth and Lifex Inflation Protected Inco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifex Inflation-protec and Salient Tactical 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 Salient Tactical Growth are associated (or correlated) with Lifex Inflation-protec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifex Inflation-protec has no effect on the direction of Salient Tactical i.e., Salient Tactical and Lifex Inflation-protec go up and down completely randomly.
Pair Corralation between Salient Tactical and Lifex Inflation-protec
If you would invest 2,528 in Salient Tactical Growth on August 31, 2024 and sell it today you would earn a total of 74.00 from holding Salient Tactical Growth or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Salient Tactical Growth vs. Lifex Inflation Protected Inco
Performance |
| Timeline |
| Salient Tactical Growth |
| Lifex Inflation-protec |
Salient Tactical and Lifex Inflation-protec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salient Tactical and Lifex Inflation-protec
The main advantage of trading using opposite Salient Tactical and Lifex Inflation-protec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient Tactical position performs unexpectedly, Lifex Inflation-protec 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 Lifex Inflation-protec will offset losses from the drop in Lifex Inflation-protec's long position.| Salient Tactical vs. Ab Value Fund | Salient Tactical vs. Leggmason Partners Institutional | Salient Tactical vs. Iaadx | Salient Tactical vs. Abr 7525 Volatility |
| Lifex Inflation-protec vs. Aqr Managed Futures | Lifex Inflation-protec vs. Ab Bond Inflation | Lifex Inflation-protec vs. Arrow Managed Futures | Lifex Inflation-protec vs. Ab Bond Inflation |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |