Correlation Between Salient Select and Salient Frontier
Can any of the company-specific risk be diversified away by investing in both Salient Select and Salient Frontier 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 Select and Salient Frontier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salient Select Income and Salient Frontier Strategy, you can compare the effects of market volatilities on Salient Select and Salient Frontier 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 Select with a short position of Salient Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salient Select and Salient Frontier.
Diversification Opportunities for Salient Select and Salient Frontier
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salient and Salient is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salient Select Income and Salient Frontier Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Frontier Strategy and Salient Select 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 Select Income are associated (or correlated) with Salient Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Frontier Strategy has no effect on the direction of Salient Select i.e., Salient Select and Salient Frontier go up and down completely randomly.
Pair Corralation between Salient Select and Salient Frontier
If you would invest 1,758 in Salient Select Income on September 1, 2024 and sell it today you would earn a total of 213.00 from holding Salient Select Income or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Salient Select Income vs. Salient Frontier Strategy
Performance |
| Timeline |
| Salient Select Income |
| Salient Frontier Strategy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Salient Select and Salient Frontier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salient Select and Salient Frontier
The main advantage of trading using opposite Salient Select and Salient Frontier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient Select position performs unexpectedly, Salient Frontier 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 Frontier will offset losses from the drop in Salient Frontier's long position.| Salient Select vs. Salient Tactical Plus | Salient Select vs. Salient Tactical Plus | Salient Select vs. Salient Tactical Plus | Salient Select vs. Salient Tactical Plus |
| Salient Frontier vs. Icon Equity Income | Salient Frontier vs. Huber Capital Equity | Salient Frontier vs. Rbc Global Equity | Salient Frontier vs. Us Vector 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |