Correlation Between Sextant Bond and Sextant Global

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Sextant Bond and Sextant Global 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 Sextant Bond and Sextant Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sextant Bond Income and Sextant Global High, you can compare the effects of market volatilities on Sextant Bond and Sextant Global 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 Sextant Bond with a short position of Sextant Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sextant Bond and Sextant Global.

Diversification Opportunities for Sextant Bond and Sextant Global

0.56
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Sextant and Sextant is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sextant Bond Income and Sextant Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sextant Global High and Sextant Bond 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 Sextant Bond Income are associated (or correlated) with Sextant Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sextant Global High has no effect on the direction of Sextant Bond i.e., Sextant Bond and Sextant Global go up and down completely randomly.

Pair Corralation between Sextant Bond and Sextant Global

Assuming the 90 days horizon Sextant Bond is expected to generate 1.05 times less return on investment than Sextant Global. In addition to that, Sextant Bond is 1.06 times more volatile than Sextant Global High. It trades about 0.11 of its total potential returns per unit of risk. Sextant Global High is currently generating about 0.12 per unit of volatility. If you would invest  1,079  in Sextant Global High on September 14, 2024 and sell it today you would earn a total of  10.00  from holding Sextant Global High or generate 0.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Sextant Bond Income  vs.  Sextant Global High

 Performance 
       Timeline  
Sextant Bond Income 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sextant Bond Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Sextant Bond is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Sextant Global High 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sextant Global High has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Sextant Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sextant Bond and Sextant Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sextant Bond and Sextant Global

The main advantage of trading using opposite Sextant Bond and Sextant Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sextant Bond position performs unexpectedly, Sextant Global 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 Sextant Global will offset losses from the drop in Sextant Global's long position.
The idea behind Sextant Bond Income and Sextant Global High pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Commodity Directory
Find actively traded commodities issued by global exchanges
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon