Correlation Between Salient Select and Salient Dividend
Can any of the company-specific risk be diversified away by investing in both Salient Select and Salient Dividend 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 Dividend 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 Dividend Signal, you can compare the effects of market volatilities on Salient Select and Salient Dividend 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 Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salient Select and Salient Dividend.
Diversification Opportunities for Salient Select and Salient Dividend
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 Dividend Signal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Dividend Signal 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 Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Dividend Signal has no effect on the direction of Salient Select i.e., Salient Select and Salient Dividend go up and down completely randomly.
Pair Corralation between Salient Select and Salient Dividend
If you would invest 1,694 in Salient Select Income on September 1, 2024 and sell it today you would earn a total of 200.00 from holding Salient Select Income or generate 11.81% 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 Dividend Signal
Performance |
| Timeline |
| Salient Select Income |
| Salient Dividend Signal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Salient Select and Salient Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salient Select and Salient Dividend
The main advantage of trading using opposite Salient Select and Salient Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient Select position performs unexpectedly, Salient Dividend 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 Dividend will offset losses from the drop in Salient Dividend's long position.| Salient Select vs. Salient Select Income | Salient Select vs. Ivy High Income | Salient Select vs. Salient Select Income | Salient Select vs. Salient International Real |
| Salient Dividend vs. Invesco Gold Special | Salient Dividend vs. International Investors Gold | Salient Dividend vs. Great West Goldman Sachs | Salient Dividend vs. Goldman Sachs Clean |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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