Correlation Between Strategic Asset and Swan Defined
Can any of the company-specific risk be diversified away by investing in both Strategic Asset and Swan Defined 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 Strategic Asset and Swan Defined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Asset Management and Swan Defined Risk, you can compare the effects of market volatilities on Strategic Asset and Swan Defined 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 Strategic Asset with a short position of Swan Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Asset and Swan Defined.
Diversification Opportunities for Strategic Asset and Swan Defined
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Strategic and Swan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Asset Management and Swan Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swan Defined Risk and Strategic Asset 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 Strategic Asset Management are associated (or correlated) with Swan Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swan Defined Risk has no effect on the direction of Strategic Asset i.e., Strategic Asset and Swan Defined go up and down completely randomly.
Pair Corralation between Strategic Asset and Swan Defined
Assuming the 90 days horizon Strategic Asset Management is expected to generate 0.89 times more return on investment than Swan Defined. However, Strategic Asset Management is 1.13 times less risky than Swan Defined. It trades about 0.13 of its potential returns per unit of risk. Swan Defined Risk is currently generating about 0.11 per unit of risk. If you would invest 1,836 in Strategic Asset Management on August 30, 2024 and sell it today you would earn a total of 193.00 from holding Strategic Asset Management or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Asset Management vs. Swan Defined Risk
Performance |
| Timeline |
| Strategic Asset Mana |
| Swan Defined Risk |
Strategic Asset and Swan Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Asset and Swan Defined
The main advantage of trading using opposite Strategic Asset and Swan Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Asset position performs unexpectedly, Swan Defined 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 Swan Defined will offset losses from the drop in Swan Defined's long position.| Strategic Asset vs. Live Oak Health | Strategic Asset vs. Eventide Healthcare Life | Strategic Asset vs. Invesco Global Health | Strategic Asset vs. Hartford Healthcare Hls |
| Swan Defined vs. Barings Active Short | Swan Defined vs. T Rowe Price | Swan Defined vs. Bbh Intermediate Municipal | Swan Defined vs. Blrc Sgy Mnp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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