Correlation Between Salient Select and Salient Select
Can any of the company-specific risk be diversified away by investing in both Salient Select and Salient Select 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 Select 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 Select Income, you can compare the effects of market volatilities on Salient Select and Salient Select 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 Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salient Select and Salient Select.
Diversification Opportunities for Salient Select and Salient Select
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Salient and Salient is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Salient Select Income and Salient Select Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Select Income 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 Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Select Income has no effect on the direction of Salient Select i.e., Salient Select and Salient Select go up and down completely randomly.
Pair Corralation between Salient Select and Salient Select
Assuming the 90 days horizon Salient Select Income is expected to generate 1.0 times more return on investment than Salient Select. However, Salient Select Income is 1.0 times less risky than Salient Select. It trades about 0.15 of its potential returns per unit of risk. Salient Select Income is currently generating about 0.14 per unit of risk. If you would invest 1,747 in Salient Select Income on September 1, 2024 and sell it today you would earn a total of 216.00 from holding Salient Select Income or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salient Select Income vs. Salient Select Income
Performance |
| Timeline |
| Salient Select Income |
| Salient Select Income |
Salient Select and Salient Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salient Select and Salient Select
The main advantage of trading using opposite Salient Select and Salient Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient Select position performs unexpectedly, Salient Select 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 Select will offset losses from the drop in Salient Select's long position.| Salient Select vs. Virtus High Yield | Salient Select vs. Alpine High Yield | Salient Select vs. Pace High Yield | Salient Select vs. Western Asset High |
| Salient Select vs. Salient Select Income | Salient Select vs. Ivy High Income | Salient Select vs. Salient Select Income | Salient Select vs. Salient International Real |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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