Correlation Between Salient Select and Marketfield Fund
Can any of the company-specific risk be diversified away by investing in both Salient Select and Marketfield Fund 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 Marketfield Fund 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 Marketfield Fund Marketfield, you can compare the effects of market volatilities on Salient Select and Marketfield Fund 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 Marketfield Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salient Select and Marketfield Fund.
Diversification Opportunities for Salient Select and Marketfield Fund
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salient and Marketfield is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Salient Select Income and Marketfield Fund Marketfield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marketfield Fund Mar 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 Marketfield Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marketfield Fund Mar has no effect on the direction of Salient Select i.e., Salient Select and Marketfield Fund go up and down completely randomly.
Pair Corralation between Salient Select and Marketfield Fund
Assuming the 90 days horizon Salient Select Income is expected to generate 0.96 times more return on investment than Marketfield Fund. However, Salient Select Income is 1.05 times less risky than Marketfield Fund. It trades about 0.1 of its potential returns per unit of risk. Marketfield Fund Marketfield is currently generating about 0.04 per unit of risk. If you would invest 1,580 in Salient Select Income on August 30, 2024 and sell it today you would earn a total of 375.00 from holding Salient Select Income or generate 23.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salient Select Income vs. Marketfield Fund Marketfield
Performance |
| Timeline |
| Salient Select Income |
| Marketfield Fund Mar |
Salient Select and Marketfield Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salient Select and Marketfield Fund
The main advantage of trading using opposite Salient Select and Marketfield Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient Select position performs unexpectedly, Marketfield Fund 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 Marketfield Fund will offset losses from the drop in Marketfield Fund's long position.| Salient Select vs. Cohen Steers Prfrd | Salient Select vs. Cohen Steers Preferd | Salient Select vs. Cohen Steers Prefrd | Salient Select vs. Cohen Steers Preferred |
| Marketfield Fund vs. Marketfield Fund Marketfield | Marketfield Fund vs. Prudential Jennison International | Marketfield Fund vs. Fidelity New Markets |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |