Correlation Between Salient Tactical and Salient Tactical
Can any of the company-specific risk be diversified away by investing in both Salient Tactical and Salient Tactical 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 Tactical and Salient Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salient Tactical Plus and Salient Tactical Plus, you can compare the effects of market volatilities on Salient Tactical and Salient Tactical 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 Tactical with a short position of Salient Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salient Tactical and Salient Tactical.
Diversification Opportunities for Salient Tactical and Salient Tactical
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salient and Salient is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Salient Tactical Plus and Salient Tactical Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Tactical Plus and Salient Tactical 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 Tactical Plus are associated (or correlated) with Salient Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Tactical Plus has no effect on the direction of Salient Tactical i.e., Salient Tactical and Salient Tactical go up and down completely randomly.
Pair Corralation between Salient Tactical and Salient Tactical
Assuming the 90 days horizon Salient Tactical is expected to generate 1.34 times less return on investment than Salient Tactical. But when comparing it to its historical volatility, Salient Tactical Plus is 1.01 times less risky than Salient Tactical. It trades about 0.03 of its potential returns per unit of risk. Salient Tactical Plus is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,097 in Salient Tactical Plus on August 29, 2024 and sell it today you would earn a total of 42.00 from holding Salient Tactical Plus or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salient Tactical Plus vs. Salient Tactical Plus
Performance |
| Timeline |
| Salient Tactical Plus |
| Salient Tactical Plus |
Salient Tactical and Salient Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salient Tactical and Salient Tactical
The main advantage of trading using opposite Salient Tactical and Salient Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient Tactical position performs unexpectedly, Salient Tactical 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 Tactical will offset losses from the drop in Salient Tactical's long position.| Salient Tactical vs. Jpmorgan Hedged Equity | Salient Tactical vs. Jpmorgan Hedged Equity | Salient Tactical vs. Gateway Fund Class | Salient Tactical vs. Gateway Fund Class |
| Salient Tactical vs. Heartland Value Plus | Salient Tactical vs. Ultrasmall Cap Profund Ultrasmall Cap | Salient Tactical vs. Columbia Small Cap | Salient Tactical vs. Great West Loomis Sayles |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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