Correlation Between Salient Tactical and Osterweis Strategic
Can any of the company-specific risk be diversified away by investing in both Salient Tactical and Osterweis Strategic 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 Osterweis Strategic 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 Osterweis Strategic Income, you can compare the effects of market volatilities on Salient Tactical and Osterweis Strategic 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 Osterweis Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salient Tactical and Osterweis Strategic.
Diversification Opportunities for Salient Tactical and Osterweis Strategic
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Salient and Osterweis is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Salient Tactical Growth and Osterweis Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osterweis Strategic 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 Osterweis Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osterweis Strategic has no effect on the direction of Salient Tactical i.e., Salient Tactical and Osterweis Strategic go up and down completely randomly.
Pair Corralation between Salient Tactical and Osterweis Strategic
Assuming the 90 days horizon Salient Tactical is expected to generate 2.06 times less return on investment than Osterweis Strategic. In addition to that, Salient Tactical is 1.79 times more volatile than Osterweis Strategic Income. It trades about 0.06 of its total potential returns per unit of risk. Osterweis Strategic Income is currently generating about 0.23 per unit of volatility. If you would invest 934.00 in Osterweis Strategic Income on August 29, 2024 and sell it today you would earn a total of 187.00 from holding Osterweis Strategic Income or generate 20.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salient Tactical Growth vs. Osterweis Strategic Income
Performance |
| Timeline |
| Salient Tactical Growth |
| Osterweis Strategic |
Salient Tactical and Osterweis Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salient Tactical and Osterweis Strategic
The main advantage of trading using opposite Salient Tactical and Osterweis Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient Tactical position performs unexpectedly, Osterweis Strategic 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 Osterweis Strategic will offset losses from the drop in Osterweis Strategic's long position.| Salient Tactical vs. Jpmorgan Hedged Equity | Salient Tactical vs. Jpmorgan Hedged Equity | Salient Tactical vs. Gateway Fund Class | Salient Tactical vs. Gateway Fund Class |
| Osterweis Strategic vs. Ms Global Fixed | Osterweis Strategic vs. Gmo Global Equity | Osterweis Strategic vs. Small Cap Equity | Osterweis Strategic vs. Rbc Global Equity |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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