Correlation Between Salient Tactical and Gold
Can any of the company-specific risk be diversified away by investing in both Salient Tactical and Gold 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 Gold 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 Gold And Precious, you can compare the effects of market volatilities on Salient Tactical and Gold 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 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salient Tactical and Gold.
Diversification Opportunities for Salient Tactical and Gold
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salient and Gold is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Salient Tactical Plus and Gold And Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Precious 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 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Precious has no effect on the direction of Salient Tactical i.e., Salient Tactical and Gold go up and down completely randomly.
Pair Corralation between Salient Tactical and Gold
Assuming the 90 days horizon Salient Tactical Plus is expected to generate 0.25 times more return on investment than Gold. However, Salient Tactical Plus is 4.0 times less risky than Gold. It trades about 0.09 of its potential returns per unit of risk. Gold And Precious is currently generating about 0.01 per unit of risk. If you would invest 1,033 in Salient Tactical Plus on September 12, 2024 and sell it today you would earn a total of 25.00 from holding Salient Tactical Plus or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salient Tactical Plus vs. Gold And Precious
Performance |
| Timeline |
| Salient Tactical Plus |
| Gold And Precious |
Salient Tactical and Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salient Tactical and Gold
The main advantage of trading using opposite Salient Tactical and Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient Tactical position performs unexpectedly, Gold 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 Gold will offset losses from the drop in Gold's long position.| Salient Tactical vs. Fm Investments Large | Salient Tactical vs. Aqr Large Cap | Salient Tactical vs. Old Westbury Large | Salient Tactical vs. Upright Assets Allocation |
| Gold vs. Artisan Thematic Fund | Gold vs. Auer Growth Fund | Gold vs. Balanced Fund Investor | Gold vs. Nasdaq 100 Index Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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